Working Paper: CEPR ID: DP449
Authors: Michael C. Burda
Abstract: This paper analyzes some of the consequences of economic and monetary union of the two Germanies. Particular emphasis is given to the real implications for the supply side of the German Democratic Republic and for resource flows between two economic regions.
Keywords: Germany; EMU; Economic Transformation; Eastern Europe
JEL Codes: 052; 122
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Monetary union (F36) | Increase in real activity (E39) |
| Introduction of the Deutschmark (DM) in the GDR (F33) | Increase in economic activity (O49) |
| Increased migration of labor (J61) | Mitigate effects of expected layoffs (J65) |
| Aggressive public investment campaign in the GDR (P35) | Increase in total factor productivity (O49) |
| Aggressive public investment campaign in the GDR (P35) | Increase in wages (J31) |