Deutschmark appreciation and structural change: An overview of economic structural reports
Changes in exchange rates have become a prominent issue in Germany and Japan - due to the enormous appreciation of the Deutschmark and the Yen. Conventional wisdom suggests that economic activity will be negatively affected if a currency is going through a phase of appreciation. The paper emphasizes the impact of the strong Deutschmark appreciation on structural change and economic growth in Germany in the 1970s and 1980s. It re-examines the diverging arguments supported in the so-called Structural Reports of the five leading economic research institutes. The paper concentrates on three questions: - first, which was the theoretical background of the discussion, - second, which were the controversial issues, and - third, which could be the lessons for Japan's economic policy drawn from the reports? The author comes to the conclusion that the strong Deutschmark has positively affected the German economy as it has increased the pressure to adjust. However, while manufacturing industries were flexible enough to reduce their staff quickly, service industries were too inflexible to provide relief for the labour market. In this respect, Germany can hardly be a model for Japan. In realizing economic reforms, it has made only little progress.
|Date of creation:||1997|
|Date of revision:|
|Contact details of provider:|| Postal: Kiellinie 66, D-24105 Kiel|
Phone: +49 431 8814-1
Fax: +49 431 85853
Web page: http://www.ifw-kiel.de
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bela Balassa, 1964. "The Purchasing-Power Parity Doctrine: A Reappraisal," Journal of Political Economy, University of Chicago Press, vol. 72, pages 584.
- W. E. G. Salter, 1959. "Internal And External Balance: The Role Op Price And Expenditure Effects," The Economic Record, The Economic Society of Australia, vol. 35(71), pages 226-238, 08.
- Donges, Juergen Bernhard, 1986. "The West German economy towards the year 2000 : an analysis of structural change," Kiel Working Papers 268, Kiel Institute for the World Economy (IfW).
When requesting a correction, please mention this item's handle: RePEc:kie:kieliw:789. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dieter Stribny)The email address of this maintainer does not seem to be valid anymore. Please ask Dieter Stribny to update the entry or send us the correct email address
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.