Currency Reforms and Berlin Blockade Flashcards
What was the trigger for the Berlin Blockade, & the physical division and permanent political division of Germany?
Currency reform
Why was a new currency introduced?
it was the quickest + most efficient solution which the Germans & their trading partners could trust again
What problems were there leading up to the currency reform?
shortages
danger of inflation like that seen in 1923
with rationing, there was a growing black market
As the black market was so prevalent, why was it vital that currency reform was brought in?
so that normal economic activity could be resumed with a stable currency and not a barter system
(to eliminate the black market for a more stable economy)
Why did the Soviets refuse to introduce the reform in their zone?
believed that currency reform was designed to undermine the Soviet zone & contrary to the need for ACC unanimity
What was the new currency?
the Deutsche Mark introduced on 20th June 1948 to Western zones
The Americans knew that the Russians would oppose currency reform, so what did they do?
printed all of the money secretly in the US & introduced the currency without consulting Stalin
What was the Soviets’ reaction to the new currency?
taken by surprise
within days they brought in their own currency & sought to cut off West Berlin from the rest of Germany
Led to international crisis
What currency did the Soviets’ introduce?
the East German mark
What was the impact of currency reform?
great economic success
improved morale of the people
political effects eg Soviets taken by surprise + major international crisis over Berlin
What examples show that an impact of currency reform was great economic success?
the index of industrial production rose so fast that by end of 1948 there was inflationary pressure
black market collapsed almost immediately
goods returned to legal market
stimulated business, complemented the Marshall plan & resurrected trade
When was the Berlin Blockade?
June 1948 to May 1949
Why was the Berlin Blockade so important/significant?
it was the single most important event in confirming the division of Germany into two countries
What was the Berlin Blockade a result of?
growing divisions between the Western Allies & the Soviets - particularly over currency
Culmination of events
What was the aim of the Berlin Blockade?
to starve West Berlin + forcing its merger into the Soviet zone
What was the Berlin Blockade?
the Soviets blocked access to West Berlin, they blocked all transport links by rail, road, air or waterway
What did the Allies do during the Berlin Blockade?
supplied West Berlin through Berlin’s Tempelhof airport, bringing in food, medical supplies + fuel
also built a new airport in the Tegel area of French Berlin
What did the blockade lead to?
The Berlin airlift programme
What was the Berlin airlift programme?
US + British pilots supplied Berlin with essentials via air transport
accomplished to such an extent that a plane landed in Berlin every 3 minutes
How many flights were carried out in the Berlin airlift programme?
some 279,000 flights