economic development Flashcards
what did the allies to do germany?
divided it into 4 zones
what did the allies ban from developing?
war industries were banned, war-related industries had their outputs restricted.
what did most germans do after the war due to the economic devastation?
some Germans left and others chose not to return. For example, 160,000 German prisoners of war in France stayed rather than returning.
what were the influx of refugees called and how did they benefit west Germany?
Guest workers– benefited germany by doing all jobs for low wages as employeed on short term fixed contracts
what policies did Erhard introduce?
believed in social market economy
18th June 1948 - Erhard announced that RM would be replaced by DM on the 21st June
24th June - Economic Council gave Erhard the power to abolish all but the most essential rationing.
what effect did Erhard policy have on the people?
People began shopping with a more careful concern for quality and price without the worry that supplies would be erratic.
what was the economic miracle?
The Korean war, new business, workers, oil crisis.
what helped the weimar republic with their economic problems?
Dawes plan
