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GMU, EMU, and the Bundesbank: The political economy of recent EMS-crises

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  • Hefeker, Carsten

Abstract

The most recent wave of political integration in Europe is usually interpreted to represent a consequence of German unification, following which the other EU countries attempted to contain an imputed threat of the change in the European balance of power. This paper shows that German unification may well have also had adverse effects on European integration by arguing that the breakdown of the EMS was due to the well-calculated monetary policy of the Bundesbank with the silent consent of the German government in the course of German Monetary Unification.

Suggested Citation

  • Hefeker, Carsten, 1994. "GMU, EMU, and the Bundesbank: The political economy of recent EMS-crises," Discussion Papers, Series II 221, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
  • Handle: RePEc:zbw:kondp2:221
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