Professor Fratzscher, German monetary union came into force 25 years ago on July 1, 1990. On the same day, capital controls in Europe were removed, laying the foundations for a European monetary union and the euro. What lessons can Europe learn from the German monetary union?
In 1990, there was considerable criticism because German monetary union was implemented so rapidly. In hindsight, I think that this was the right step to take as, ultimately, a common currency in the form of the D-Mark was a key prerequisite for establishing new industries and maintaining and creating employment, and therefore crucial for the integration of East Germany. This is one of the lessons learned from the German experience "..."
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