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SOCIAL COSTS OF MONETARY UNION

Unemployment: Mass layoffs could result as East Germans reject their own goods in favor of Western ones. Fixed incomes: East German pensioners could see their incomes shrivel to a third of what they normally receive if the currency shift were made at a more realistic rate of perhaps 1 to 3 instead of a straight 1 to 1 rate.

Savings: East Germans are concerned that their often considerable savings will be nearly wiped out if marks are converted at market-realistic rates.

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