German Monetary Unification and European Monetary Union: Theoretical Issues and Strategic Policy Problems

Politicians and economists in the Federal Republic of Germany are confronted with two types of monetary integration: the German Monetary Unification (GMU) and the European Monetary Union (EMU). The GMU is a new challenge resulting from the November 9, 1989 revolution in East Germany. The first ideas for monetary integration in Europe date back to the year 1970 when the former Prime Minister of Luxembourg Werner presented his plan for an EMU. In 1989 the Delors-Committee launched new efforts in this direction and outlined a plan for the realization of the EMU in three stages.