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Best economic progress since WWII - Essay Example

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However, German underwent through several years of economic challenge after the Second World War. Most of their homes and properties were immensely destroyed. Most notably, the highest population in Germany lacked food to…
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Best economic progress since WWII

Download file to see previous pages... However, its economic growth did not translate into military might since its international status was regulated by treaty powers. Indeed, German’s economy has successfully grown since the World War II.
Germany did not act as decisive leader, but projected itself as a good team player, in the international affairs. The increased levels of Germany economy after the World War II, was caused by elimination of price controls, reduction of marginal tax rates, and currency reforms, between 1948 and 1949 (William 48). Before the year 1948, Germany was controlled by rationing and price controls. Price controls and rationing, which existed before 1948, were meant to buy raw materials at artificially low price. Most Germans lacked enough food due to price control on food. Currency reform, in Germany, was pioneered by Ludwig Erhard. He was determined to shape a successful economy in Germany. The currency reform led to the abolition of Reichsmark. As a result, a new currency-deutsche mark- was introduced. The currency reform was installed on 20 June 1948. Most Nazi and occupation regulations and rules were abolished to usher in a new economy; currency reform aimed at the provision of valuable store, and accepted legal tender. It also laid a foundation for West German State and economy (William ...Download file to see next pagesRead More
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