We went through Checkpoint Charlie: the mirrors under the bus; the security checks; the obligatory change of deutschmarks for ostmarks
West German Deutschmarks had to be exchanged for East German Ostmarks
They'll be ordered to change their euros into old East German Ostmarks
, show their passports to buy a sausage and be warned not to carry "decadent" western literature.
East Germany knew that West Germany would exchange ostmarks
for DMs not at their black market rate, but rather at a politically determined rate.
The one-for-one conversion of East German ostmarks
for deutsche marks, the privatization and restructuring of state enterprises, and the striking initial jump in real wages are no longer matters of policy debate, although they may have left their mark on the economy.
The Bundesbank may not have been able to override Chancellor Helmut Kohl's desired exchange rate of ostmarks
for deutsche marks, or his "solidarity" transfers, but the Bundesbank Direktorium was comfortable in making it clear that the Kohl government and not the Bundesbank Direktorium should be held accountable for the inflationary pressures; the Bundesbank Direktorium took accountability for limiting the second-round effects of these pressures.
German monetary and economic unification in mid-1990, in which residents of the former East Germany traded in their ostmarks
for deutsche marks, led to an increase in the level of M3 on the order of 16 percent (the shift is apparent in table 3 but has been adjusted for in the figures shown in table 2).
When unification took place, they were able to exchange their almost worthless Ostmarks
for Deutchmarks on a one-for-one basis.