Adenauer's Economic Polices

Question 1

Who was the ‘economic miracle’ led by?

Answer 1

Ludwig Erhard

Question 2

Who was Ludwig Erhard?

Answer 2

• Minister of Economics from 1949-63
• Vice Chancellor from 1957
• Chancellor of Germany from 1963-66

Question 3

What were the main successes of the ‘economic miracle’?

Answer 3

1. Economic growth averaged at 8% per year
2. 1950-55: GNP doubled and at risen again by 50% by 1960
3. Balance of trade became positive (higher export rates than import rates)
4. Unemployment decreased to 4.2% and then full employment

Question 4

What were the reasons for the success?

Answer 4

1. FRG had access to extensive resources
2. Marshall Plan
3. Population and refugees were well-educated and skilled
4. Bundesbank was very effective
5. No reparations/defence costs
6. Joined ECSC and EEC
7. Government expenditure was low

Question 5

What was the Marshall Plan?

Answer 5

American initiative to provide money for Western European countries to rebuild after WWII