The German Blueprint of European Disaster

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Picture: aurore.asso.frBy Julio Godoy

BERLIN - Throughout the 1990s, the German economic elite, supported by the conservative government of Helmut Kohl, and especially by the German central bank, the formidable Bundesbank, practised the policy of rigorous social adjustment to increase the country's international competitiveness. The cornerstone of this policy was the artificial appreciation of the German currency, the Deutsche mark (D-Mark), deliberately triggered by the Bundesbank's policy of high interest rates, allegedly to halt inflation.

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