Economic stability 1965 - 1989 Flashcards
What did the FRG experience between 1966 and 1967?
the first recession
Identify three consequences of the economic recession of 1966 to 1967.
- trade reduced
- production decreased
- unemployment increased
How did the government approach the economic recession of 1966 to 1976?
they decided that they had to interfere in the economy
By how much did government spending increase between 1965 and 1970?
1965 - 46.7 million DM
BY 1970 - 115.9 million DM
What two laws were introduced to help the government deal with the economic crisis?
the economic stabilisation law which was introduced in 1967 and said that the government had the power to intervene in times of economic crisis
in 1968 a new clause was added to the basic law which said the government could move money between lander
What did the government set up to control price levels?
cartels
What affected the economy of the FRG in the 1970s?
the international oil crisis of 1973 and 1978
Who did the FRG rely on for 40% of their oil?
OPEC ( the organisation for petroleum exporting companies)
How much did the FRG spend on 140 million of tonnes of oil in 1972? How much had this risen to by 1973 and 1978?
10.8 million DM
1973 - 32.8 Billion DM
1978 - 49 billion DM
What measures were introduced to reduce oil consumption in the FRG?
- car free sundays
- investment into atomic power
- conversion to new fuels
What economic policies was Chancellor Schmidt criticised for?
1975 public spending cuts and higher income tax 1975
What did unemployment hit in 1981?
1.7 million
What evidence is there that the FRG governments were moving away from a social market economy?
the public spending being cut further 1981 even though unemployment was rising
How did Chancellor Kohl further reduce government interference in the economy in the 1980s?
cut public spending
What was crucial in helping the FRG to overcome the economic problems of the 1960s and 1970s?
their incredibly strong exporting market
