U.S. MILITARY EXPENDITURE AND THE DOLLAR

This paper examines the connection between U.S. military expenditure and the dollar-mark real exchange rate. Quarterly data for the period 1951.1–1986.3 are used to show that there exists a significant relationship linking real exchange rate, real military spending, and real GNP. The conclusion is based on evidence that these three variables are cointegrated.     

Germany's Anti-Foreigner Crisis: State Disunity and Collective 'Forgetting'

Abstract: Employment of foreign labor in Germany is generally perceived as a recent phenomenon; Germany's pre-war experiences with foreign labor do not figure prominently in public discussion. This article analyzes the active omission of this aspect of the past as an important feature of German social memory. Drawing largely on Ulrich Herbert's research, the forgotten' history of pre- and post-war experiences with foreign labor is summarized. This provides a perspective on the significant parallels between conflicts today and those of prior periods and exposes a fundamental conflict within the state regarding the use of foreign labor. Anti-foreigner violence is reinterpreted as representing a failure of the state to maintain ideological unity without periodically responding to powerful and enduring anti-foreigner pressure.