Marginal Revolution: Fiscal stimulus and German unification: "For all the talk about the Great Depression, we are missing one historical analogy for a program of large fiscal stimulus, namely Germany after the Berlin Wall came down. The two countries united, lots of money was spent and lots of money was borrowed. West Germany had a modern economy with both manufacturing and services."
There is certainly a difference when a small country and most of the planet is involved with something like this. My relatives that were in East Germany did like the reunificaiton generally but there were lots of problems going through it.
But then that was going from communist to somewhat free market. We appear to be going the other way.
Thursday, March 26, 2009
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