Re: Query on German Economics

[g kohler <gko15@xxxxxxxxxxx>]

?. . . give us a primer??

Michael, not sure what about ? leftist economics in Germany, current
West-East debates within Germany, or past GDR ? FRG comparisons of the
1980?s, as Domhnall asked about? Here are a few tidbits.

Leftist economists: The University of Bremen has had a leftist reputation
since the 1960?s like, say, Amherst in the US. They had major
representatives of dependencia theory in the 70?s. Today, the working group
on alternative economics, which I mentioned, reminds me of the Institute for
policy alternatives in Canada in terms of intent and activities. Leftist
economists seem to be largely outside universities in Germany today, with
some exceptions like the post-Keynesians at Bremen University and some in
Berlin. The Marxist university economists of former GDR lost their jobs in
1989-90.

Current debate on ex-GDR and old-FRG: when there are four economists, you
have at least five opinions ? that applies here, too. The cumulative
transfer payments from West to East since 1990 are quoted as 1.25 trillion
Euros (1.5 trillion US$) for real investments in infrastructure and
factories and for pensions, and social supports. Unemployment in ex-GDR is
still up to 20% in various regions. The PDS (Party of Democratic Socialism,
dubbed ?post-Communists? in the media) had 28% and 23% of the vote in two
state elections (?Land?) in ex-GDR just a week ago. The party is in a
governing coalition in two other Laender of ex-GDR, but has no significance
in old-FRG.

Situation in the 1980s and 1989-90: Couldn?t give too much detail on that.
It is frequently claimed that GDR productivity was about 1/3 of FRG
productivity before reunification. The leading FRG economists at the time of
reunification opposed the way economic reunification was done. Political
reasons prevailed (under Kohl as chancellor) and a kind of shock treatment
with instant monetary union was implemented (East Deutsche Mark set to equal
West Deutsche Mark).

Best,
Gernot Köhler

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