The German-German Monetary Union

There seems to be a definite decision in favour of a speedy creation of an economic and monetary union between the two Germanies. The introduction of a hard currency is a timely signal intended to bring mass emigration from East Germany to an end. One of the major problems is to find the "right" conversion ratio for the East German Mark. The economic reconstruction of the GDR will stimulate growth in West Germany with positive effects also extending to Austria. Results from econometric model simulations suggest an additional growth potential for Austria in the order of 1 percent of real GDP until 1994.