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Economic Policy for the New German Länder: Supply-Side Economics Needed

In: East Germany’s Economic Development since Unification

Author

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  • Michael Hüther

Abstract

Unification changed substantially the conditions for all fields of economic policy in both parts of Germany, but the basic concept of supply-side economics gained even more importance. In eastern Germany as in Western Germany investment activity has played a key role since 1991, and economic policy could and can best support growth by ensuring both that investment conditions do not worsen in the western part of Germany and that they rapidly improve in the eastern part. The core problems of the German economy are rooted in the supply side, not in the demand side.

Suggested Citation

  • Michael Hüther, 1998. "Economic Policy for the New German Länder: Supply-Side Economics Needed," Studies in Economic Transition, in: Jens Hölscher & Anja Hochberg (ed.), East Germany’s Economic Development since Unification, chapter 3, pages 37-49, Palgrave Macmillan.
    • Handle: RePEc:pal:stuchp:978-1-349-14705-2_3
    DOI: 10.1007/978-1-349-14705-2_3
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