In this Transatlantic Perspectives essay, AICGS Senior Non-Resident Fellow Dr. Jennifer Hunt, Professor of Economics at McGill University, examines why sustained economic growth in eastern Germany has proved elusive despite transfers of €1 trillion from western Germany. Dr. Hunt writes that the puzzle of this discrepancy is whether the stalled convergence with western Germany is related to initial policy mistakes, to shortcomings in current policies, or to emigration.