ABSTRACT
This chapter aims to give some answers to the question of how to cope with imbalances in the monetary union and the role of a former key currency country therein. The financial crisis of the 1990s mainly the Asian crisis but also the Russian crisis and the breakdown of the Currency Board in Argentina led to more subtle views on development strategies. A natural choice to evaluate the German export-led growth model is therefore found in the sustainability debate. The microeconomic incentive compatibility: The outward-orientation of the export-led growth model usually leads to dynamic efficiency gains. The monetary union is not an end in itself. It aims to foster prosperity and convergence of income and living conditions and to increase overall economic welfare. The social and political aspect: The export-led growth strategy is usually based and enhances/deepens a social consensus which has to be at the root of such a strategy.
