>>24265
Not incorrect. Wages and part of savings were adapted 1:1, because any other rate was seen as very unpopular.
> before that
Before that, there was no "exchange rate" in any meaningful sense. The East German Mark was not a convertible currency. Neither was any of the other comecon currencies. They used 'transfer rubbles' in comecon commerce, but that wasn't a currency, just a unit of accounting.
> Could export goods
Most of those goods could only compete on price, because they were either outdated or of mediocre quality at best. Combine this with innefecient processes and an inability to substitute labor for capital.
> collapsed
The East German economy had long been in dire straits. In 1982, the prime minister of Bavaria saved the East German government from bankruptcy with a loan from West German banks.