There are very few times in history when a country got itself to a place of economic wealth like post-war Germany. From being a threshold country in the 19th century to becoming the most important nation economically in Western Europe, Germany has a history that is not only very interesting but also not all as fancy and sparkling as it seems. This paper will give you a short timeline of the key events that happened in the German economic history between 1945 and 1973 that lead to the success of the nation. You will see that most of the miracle was made possible only with the help of the United States and that the economic growth was not exclusive to Germany. In the end, you will find multiple approaches that all do their bit to explain why Germany and other countries in Western Europe were able to get this massive economic boom.
Table of Contents
- History
- Situation after world war two
- A report on Germany – the decision to rebuild
- The Currency reform - from Reichsmark to Deutschemark
- The Marshall Plan – Help from overseas
- European Payments Union 1950-1958
- The Social Market Economy
- Reform of Pensions 1957 by Konrad Adenauer
- Bretton Woods System
- Approaches to Causes
- Path dependency
- Keynesian Approach
- Catch up effect
- Notes
- Sources
Objectives and Key Themes
This paper aims to provide a timeline of key events in German economic history between 1945 and 1973, outlining the factors that led to the nation's post-war economic success. The focus will be on the contributions of the United States and the broader context of economic growth in Western Europe.
- Post-war economic recovery in Germany
- Role of the United States in Germany's economic reconstruction
- Comparison of economic growth in Germany and other Western European countries
- Key economic policies and reforms that fueled growth
- Various perspectives on the causes of the German economic miracle
Chapter Summaries
- History: This chapter explores the economic conditions in Germany after World War II, highlighting the surprising level of intact industrial infrastructure due to Allied focus on transportation routes rather than factory destruction. The chapter further delves into the "A report on Germany," commissioned by American military governor Lucius D. Clay, which stressed the importance of rebuilding the German economy for the recovery of Western Europe. The report emphasizes the need to stimulate coal production, improve nutrition for mine workers, and encourage exports for importing food.
- The Currency reform - from Reichsmark to Deutschemark: This section examines the introduction of the Deutschemark in 1948, tracing its origins to the CDG-Plan developed by American economists Gerhard Colm, Joseph Dodge, and Raymond Goldsmith. The reform significantly reduced the money supply, a radical measure only possible with US military backing, leading to an apparent economic boom. The chapter clarifies that the success of the currency reform was due to a combination of factors, including pent-up demand and the elimination of the black market, rather than a true economic miracle.
Keywords
This work focuses on key concepts such as post-war economic recovery, economic miracle, the role of the United States in German reconstruction, the Deutschemark currency reform, and the comparison of economic growth in Germany and other Western European countries.
Frequently Asked Questions
What was the economic situation in Germany directly after WWII?
Surprisingly, much of the industrial infrastructure remained intact, as Allied bombing focused more on transportation routes than on factories, providing a base for recovery.
What was the Marshall Plan?
The Marshall Plan was a US program providing economic aid to Western Europe to help rebuild economies after the devastation of World War II and prevent the spread of communism.
How did the currency reform of 1948 affect Germany?
The introduction of the Deutschemark replaced the Reichsmark, drastically reduced the money supply, eliminated the black market, and triggered an immediate economic boom.
What is the "Social Market Economy"?
It is an economic system that combines a free-market capitalist structure with social policies to establish fair competition and a welfare state.
What were the causes of the German "Economic Miracle"?
Causes include US aid, the currency reform, the catch-up effect of industrial production, and specific Keynesian economic approaches.
- Quote paper
- Robert Heller (Author), 2020, Rebuilding Germany after WWII, Munich, GRIN Verlag, https://www.grin.com/document/1281639
