Germany in the 1990’s: Managing Reunification Briefing

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  Fiscal Policy.

  • Identify who controls German fiscal policy.
  • Describe German fiscal policy from 1989-1992; be sure to identify the components you think are relatively important.
  • What were the effects of German fiscal policy on both the West and East German economies

    Monetary Policy.
  • Identify  who controls German monetary policy.
  • Describe  German monetary policy from 1989-1992—i.e., the main features of monetary policy surrounding reunification.
  • What were the effects German monetary policy on both the West and East German economies?


    Was monetary policy affected by fiscal policy? If so, how?

    In July 1992, what were the problems facing the German government and what policies were available to the German government to solve them? Were these alternatives viable?

    What was the effect of German monetary policy on other EMS nations?
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