This chapter examines some of the issues that arise in the process of integrating the monetary and financial system of the former German Democratic Republic (GDR) into that of the Federal Republic of Germany (FRG). The topic is divided into three broad areas: an analysis of the currency conversion, an examination of difficulties that will be faced in conducting monetary policies in the new environment, and issues related to the restructuring of the financial system and its prospective performance at a microeconomic level.
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