Provides an alternative analysis to monetary economics based on the distinctive properties of bank money. The book examines exchange rate instability and puts forward an alternative proposal for European Monetary Union

The end of the Bretton Woods regime and the fall of the Iron Curtain deepened the export orientation of the German model of the economy. Only after entry into the Monetary Union, however, did rising exports turn into a persistent export–import gap that became a problem for other eurozone...