Date of Defense
Dr. William Kern
Dr. Gunther Hega
This paper will demonstrate that Germany's decision to join the Economic and Monetary Union (EMU) cannot be fully attributed to economic factors alone. Instead, Germany's decision is more politically motivated. A review of the brief history of the EMU will lead us to the conclusion that the initial idea of EMU was based on political considerations. It was only after the collapse of the Bretton Woods system that an economic Justification for EMU was considered. An analysis of the economic costs and benefits of the EMU will show that most of the economic justifications are not convincing enough to explain the real motives behind Germany's decision to join the EMU. The third section of the paper will deal with the political rationale for EMU. I suggest that the EMU is to be the final step towards a German-French "grand strategy" of integrating Europe. Understanding the Franco-German leadership in the creation of European Coal and Steel Community (ECSC) and the EMU is the key to understanding the real motives behind the EMU. I will also examine, briefly, the EMS crisis in 1992 which will reveal the political forces behind the crisis.
Mohamed, Mohd Puzi, "Germany and European Monetary Union" (1996). Honors Theses. 927.
Honors Thesis-Campus Only