Economics In The FRG

Question 1

What period did economic recovery occur over?

Answer 1

1945-55

Question 2

What was the postwar economy like?

Answer 2

There was inflation, barter economy and people had about 1500 calories a a day (rationing)

Question 3

What date did Erhard introduce his reforms?

Answer 3

20th June 1948

Question 4

How much did the monetary supply contract by upon introduction of the DM?

Answer 4

90%

Question 5

How were wages and savings exchanged?

Answer 5

Wages: 1:1
Savings: 100:6.5

Question 6

How did giving DM deposits to industry improve output?

Answer 6

Increased by 50%

Question 7

What tax reforms were introduced?

Answer 7

Taxes decreased for lower incomes, as much as from 85% to 18%, in order to have more people spending money to stimulate the economy.

Question 8

What was the impact on absenteeism?

Answer 8

Fell from average of 9.5 to 2 hours per week

Question 9

How much did salaries rise by from 1949-55?

Answer 9

80%

Question 10

What did unemployment fall from in 1950 to 1960?

Answer 10

From 10 to 2%

Question 11

What government measures helped growth?

Answer 11

Investment Aid Law 1952, gave DM 3.2 billion subsidy to industry
Reduced protection tariffs via ECSC

Question 12

When had the trade deficit moved to profit by?

Answer 12

1952

Question 13

Which other factors helped the economy grow?

Answer 13

Korean War 1950-53, produced armaments.
Economic integration into Europe
Marshall Aid ($1.5 billion)
Codetermination

Question 14

When was the economic miracle?

Answer 14

1955 to 1966

Question 15

What was the grout rate from 1955-66?

Answer 15

8%

Question 16

Which industry had a lotof exports?

Answer 16

Car industry, brands eg VW, BMW and Porsche

Question 17

How many East German immigrant workers were absorbed?

Answer 17

2 million

Question 18

When was the EEC formed and via what treaty?

Answer 18

1951, Treaty ofParis. It was Germany, France and the Benelux countries.

Question 19

What was the EEC?

Answer 19

The High Authority controlled coal and steel industries of the members.
Acted as a treaty of friendship
Coal trade increase 10x between members
Welfare eg 112,000 apartments for workers

Question 20

When was the ECSC formed and via which treaty?

Answer 20

1957 Treaty of ROme, included Italy in the free trade zone.

Question 21

How did the FRG become the leaders of the ECSC by the 1980s?

Answer 21

Clear knowledge of how it wanted it too develop by greater integration.
‘Honest broker’ willing to pay more
Supported interest of smaller member countries.
Paid 25% and in returned received 25% of GDP

Question 22

When was the recession?

Answer 22

1965-69

Question 23

What caused the recession?

Answer 23

Erhard had spent too much on social welfare and military hardware for rearmament.

Question 24

How much had prices risen by by 1966?

Answer 24

4%

Question 25

What did Erhard propose and how much did he cut spending?

Answer 25

Proposed people worked an extra hour (rejected by trades unions), had to cut spending by 10%

Question 26

What prevented rising exports?

Answer 26

A global downturn

Question 27

Why did Erhard resign and when?

Answer 27

1966, couldn’t convince the US to cut the FRGs contribution to the US armed forces.

Question 28

Who was Kiesinger’s Economics Minister?

Answer 28

Schiller

Question 29

What plan did Schiller introduce?

Answer 29

The 5 Year Plan in 1967, gain greater government control of taxes

Question 30

When was the Stabilisatioon LAw introduced and what was it?

Answer 30

1967, more coordination of government spending (federal and central)

Question 31

Which articl was changed to allow greater government control of tax?

Answer 31

Article 109

Question 32

What happened to public spending and taxes?

Answer 32

Public spending cut, VAT increased from 10-12%

Question 33

What was inflation at in 1969?

Answer 33

1.5%

Question 34

Why did the grand coalition collapse in 1969?

Answer 34

DIsagreemnts over revaluation of the DM

Question 35

What policy did Brandt follow?

Answer 35

Greater social welfare spending

Question 36

How much did Brandt increase public spending, as a percentage of GDP?

Answer 36

From 25 to 33% of GDP

Question 37

How much did Brandt increase spending on education by?

Answer 37

300%

Question 38

How much did pensions for those wounded in the war rose by?

Answer 38

5%

Question 39

How much did the social housing budget increase by?

Answer 39

36%

Question 40

How much did inflation increase by from 1969 to 1973?

Answer 40

Increased from 2 to 7%

Question 41

Despite inflation, how did Brandt remain in office?

Answer 41

Popularity of Ostpolitik

Question 42

When was the oil crisis?

Answer 42

1973

Question 43

How much more did the FRG have to pay for its imports due to the oil crisis?

Answer 43

DM17 billion, making the balance of payments from a surplus of almost $700 million fal L to negative within the year.

Question 44

What was unemployment in 1975 compared to 1973?

Answer 44

4.7% compared to 1.2%

Question 45

What was the inflation rate for most of the 1970s?

Answer 45

6% (although, much worse in Britain at 24%)

Question 46

What issues did the Oil Crisis cause?

Answer 46

Rising tax for those working, increased government welfare spending for those not working, reduced task revenue as more people were unemployed.

Question 47

What was the immediate government response to the Oil Crisis?

Answer 47

Introduced car free Sundays and ended guest worker recruitment.

Question 48

Why do Germany recover better than other European nations?

Answer 48

Utilised nuclear power, abolished emulations on mergers, gave grants of 7-8 billion DM to the private sector