Fernando Fernández is economist and professor at IE Business School
The collapse of the Berlin Wall had important consequences. The Federal Reserve made a strategic decision to equate 1-1 the GDR framework with that of the Federal Republic of Germany. This led to a public deficit that had to be financed by all Europeans, and hence the rupture of Stability Pact and many doubts about the stability of the fiscal rules.
And it also had important consequences for the world economy, fundamentally the end of the alternative to capitalism; the end of the socialist model as a competitive and equal alternative. An economic model that does not produce equality or prosperity.