Creating a Social market economy Flashcards
What was the new currency and when was it introduced?
The stronger currency, the Deuschemarke by Erhard on 20th June 1948
What assurances did the new currency provide?
Due to its high value, it encouraged the people to return to work, knowing they would get paid with reliable money. It also caused the collapse of the black market.
What was the Social market economy?
A policy that adhered to supply and demand which also allowed the government to maintain economic control.
What economic help did America provide?
The Marshall plan - helped European countries in the hope to resist communism.
How were new jobs filled?
Germany began to effectively use its natural resources eg. rapidly increasing its coal mining. Manufactured products were shipped overseas: tools, machines, electronic devices and cars all appeared in the US market.
Were there financial implications of the Arab Oil Crisis?
Speed limits and flying restrictions were imposed to limit national consumption which had x3. By continuing to export goods to other countries, was able to survive and slowly began to recover.
How was the FRG affected by the Second oil crisis 1979?
It sent the Germany economy into a recession and unemployment began to rise until the price was lower in the mid 80s
What was the Petersburg agreement 1949?
Allies agreed that Germany should be granted the right to establish diplomatic relations with other countries.
What was the European Coal and Steel Community (ECSC) 1950?
Nations could agree on common prices and implement the free exchange of coal and steel between its six members.
What did the Treat of Rome 1957 create?
The European Economic Community, a customs that presided over international trade and prices of produce.
How was further integration of the FRG done?
They were invited to join NATO and the West European Union.
