“…Second, these studies examined GDH without taking into account the dramatic changes in the EMS after Germany's unification in 1990. There is considerable evidence that the market fundamentals have changed in the 1990s in view of the anticipated monetary unification of the EMS members (e.g., Laopodis, 1998Laopodis, , 2001. For instance, one can site the process of convergence that many countries embarked in, based on the Maastricht Treaty criteria in 1994, and the introduction of the Euro in January 1999.…”