Finance & History Banking on Deutsche Mark
Mar 4, 2025
Join Matthias Kemmerer, Head of History Communication at Commerzbank, as he dives into the evolution of German banking from the 1960s to the 1990s. Discover how the Deutsche Mark was shaped by national interests while avoiding the status of a global reserve currency. Kemmerer discusses the balance between monetary sovereignty and global integration, the reputational dynamics within banking, and the historical impacts of archival resources. It's a fascinating exploration of finance, strategy, and the legacy of decisions that influenced Germany's economic power.
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Bundesbank's Fears
- The Bundesbank feared losing control over the German economy if the Deutsche Mark internationalized.
- They prioritized national sovereignty and domestic inflation control over global reserve currency status.
Gentleman's Agreement
- The 1968 Gentleman's Agreement, an informal agreement, gave German banks control over Deutsche Mark bond issuance.
- These agreements were flexible and adaptable, allowing quick responses to market changes.
Euro Markets Impact
- The rise of Euro-Deutsche Mark markets abroad challenged the Bundesbank's control.
- They relied on informal data sharing with German banks due to foreign banking secrecy.
