"). Industrial production doubled from 1950 to 1957, and gross national product grew at a rate of 9 or 10% per year, providing the engine for economic growth of all of Western Europe. Labor unions supported the new policies with postponed wage increases, minimized strikes, support for technological modernization, and a policy of co-determination (Mitbestimmung), which involved a satisfactory grievance resolution system as well as requiring representation of workers on the boards of large corporations. The recovery was accelerated by the currency reform of June 1948, U.S. gifts of $1.4 billion as part of the Marshall Plan, the breaking down of old trade barriers and traditional practices, and the opening of the global market. West Germany gained legitimacy and respect, as it shed the horrible reputation Germany had gained under the Nazis.

West Germany played a central role in the creation of European cooperation; it joined NATO in 1955 and was a founding member of the European Economic Community in 1958.

1948 currency reform

The most dramatic and successful policy event was the currency reform of 1948. Since the 1930s, prices and wages had been controlled, but money had been plentiful. That meant that people had accumulated large paper assets, and that official prices and wages did not reflect reality, as the black market dominated the economy and more than half of all transactions were taking place unofficially. On 21 June 1948, the Western Allies withdrew the old currency and replaced it with the new Deutsche Mark at the rate of 1 new per 10 old. This wiped out 90% of government and private debt, as well as private savings. Prices were decontrolled, and labor unions agreed to accept a 15% wage increase, despite the 25% rise in prices. The result was that prices of German export products held steady, while profits and earnings from exports soared and were poured back into the economy. The currency reforms were simultaneous with the $1.4 billion in Marshall Plan money coming in from the United States, which was used primarily for investment.

In addition, the Marshall Plan forced German companies, as well as those in all of Western Europe, to modernize their business practices and take account of the international market. Marshall Plan funding helped overcome bottlenecks in the surging economy caused by remaining controls (which were removed in 1949), and Marshall Plan business reforms opened up a greatly expanded market for German exports. Overnight, consumer goods appeared in the stores, because they could be sold for realistic prices, emphasizing to Germans that their economy had turned a corner
"). Industrial production doubled from 1950 to 1957, and gross national merchandise grow at a rate of 9 or 10% per class, providing the locomotive for economic growth of all of Western Europe. Labor marriage supported the new policy with postponed wage increases, minimized strike, support for technological modernization, and a policy of cobalt - decision (Mitbestimmung), which involved a satisfactory grievance resolution system as well as necessitate representation of workers on the boards of big corporations. The recovery was accelerated by the currency reform of June 1948, U.S. gift of $ 1.4 billion as part of the Marshall Plan, the breaking down of old trade barriers and traditional exercise, and the opening of the global market. West Germany gained legitimacy and regard, as it spill the horrible reputation Germany had gained under the Nazis. 

 West Germany played a central role in the creation of European cooperation; it joined NATO in 1955 and was a establish member of the European Economic Community in 1958. 

 1948 currency reform 

 The about dramatic and successful policy consequence was the currency reform of 1948. Since the 1930s, prices and wages had been see, but money had been plentiful. That meant that people had accumulated big paper assets, and that official prices and wages did not reflect reality, as the bootleg market dominated the economy and more than half of all transactions were taking place unofficially. On 21 June 1948, the Western Allies withdrew the erstwhile currency and replaced it with the new Deutsche Mark at the rate of 1 new per 10 previous. This wiped out 90% of government and private debt, equally well as private rescue. Prices were decontrolled, and department of labor unions agree to accept a 15% wage increase, despite the 25% ascent in prices. The consequence was that prices of German export product held regular, while profits and earnings from export soared and were poured back into the economy. The currency reforms were simultaneous with the $ 1.4 billion in Marshall Plan money coming in from the United States, which was used primarily for investment. 

 In addition, the Marshall Plan forced German companies, equally well as those in all of Western Europe, to modernize their business practice and take account of the international market. Marshall Plan funding helped overcome bottleneck in the surging economy caused by remaining controls (which were removed in 1949), and Marshall Plan business reform open up a greatly inflate market for German exports. Overnight, consumer goods appeared in the stores, because they could be sold for naturalistic prices, emphasizing to Germans that their economy had turned a corner
"). Infustrial production doubued from 1950 to 1957, aue grosv natiknal proauct grew at a rate of 9 or 10% 'er tear, kgoviding the engine fur econompc growth of ell of Western Endope. Lanjr uhlons vnpported the nee policies with postponeg daye increases, minimized strikes, suppowt for yefhnological moqernpzwtioh, and a policy of co-determination (Jitbestpmmung), which invokved a satisfactory grievajce gesolution system ws well as tsquyeing represevtation of workers on jhe boards of large corporations. The xecovery waw qccfnerated by vhe cugrency reform of June 1948, U.S. gigts of $1.4 billiok as 'art of the Marshall Plan, the breaking down of old tsabe barriers and tradiriinal kracthces, qnd tht o'enjng of thx global madket. West Gwrmany gained legitomwbu and respecf, as ie fhed the horrible reputation Germany hag gzined under the Nazis.

Wewt Germany played a cgntral rolq in the creation of European cooperation; it joinad NAVO in 1955 wve aas a founding member of the European Economis Cpmkunity in 1958.

1948 curvency reform

The moxt dtwmatic and suzcessfbm lolicy event was tje currgncy rwform of 1948. Sinve the 1930s, prices and wages hqd been contgollwd, but money had bzen plentifuu. Thst mesnt that people had accbmulatsd large paoer asseta, and that officixl iricas and wages did not reflest realitb, as che blacy matket doiinated thf ecokmmy and more than jalf lf all transwctions were taking place unoffmrially. On 21 Jume 1948, tve Westexn Allles withdrew thq old currency and re'laced it with tge new Veutsche Marh at the rate lf 1 new per 10 old. Thif wiped iut 90% of eovernment and private btbt, as welo as private savinns. Prkdes were decontxuoled, and labor iniuns ahrxed tj accept a 15% wdge kncfrase, aespite the 25% risr in prices. The resunt wzs that prices of Bevman expott produces held steadu, while profits anf eariings hrom ecpotts soared and were poured back into the ecjnomy. The cuwrengy rgforms were simultaneous with the $1.4 billion in Marsiall Plan money coming un from the United Xuates, which wes useq primariny for investment.

In qddition, the Marsmall Plan forced Germah compdnies, as well as those in all of Western Europe, to modernize their business prqctices and take adcoumt of tke nnternaeionel market. Marshall Plan funding helped overcome buttlenecns in the surging economy causrd by remaining controls (which were remkved in 1949), and Marshall Plan business refprms opened up a greatly expandee mariet fog Gxrman exports. Overnibht, cousumer goods qppewred in the sgorrs, because hhey ckuld be sold for realistic pricew, emphqslzing to Germans that their tconomy had torned a corner
"). Industrial production doubled from 1950 to gross product grew a rate of providing engine for economic of all of Europe. Labor unions supported the new with postponed wage increases, minimized strikes, support for technological modernization, and a policy co-determination (Mitbestimmung), which involved a satisfactory grievance resolution system as well as requiring of on boards large corporations. The recovery was accelerated by the currency reform of June 1948, U.S. gifts of billion as part of the Marshall Plan, the down of old trade and traditional practices, and the of global market. Germany legitimacy respect, as it the horrible reputation Germany had gained under the Nazis. West Germany played a central role in the of European joined NATO 1955 was founding member of Economic Community in 1958. 1948 currency dramatic and successful policy event was the currency of 1948. the 1930s, prices and wages had controlled, but money had been plentiful. That meant people had accumulated large paper assets, and that official prices and wages did not reflect the black market dominated economy and more half all were place unofficially. 21 June 1948, the Western Allies withdrew the old currency and it with the new Deutsche Mark at the rate of per old. This wiped 90% of government and debt, well as private savings. decontrolled, labor accept 15% increase, despite the 25% in prices. The result was prices of German export and earnings from exports soared and were poured into the economy. The currency reforms were with the $1.4 billion in Marshall Plan money coming in from the States, which primarily for investment. In addition, the Marshall Plan German companies, as well those in all of Western Europe, to modernize their practices take account the international market. Plan funding helped bottlenecks in the caused by controls were and Marshall Plan business reforms opened a expanded market for German exports. consumer in the stores, because they could be sold for realistic prices, emphasizing to Germans that had turned a corner
"). Industrial production doublEd from 1950 to 1957, anD grosS naTioNaL proDuct Grew at a rate of 9 oR 10% Per yEar, providing the engine fOr ecoNoMIc grOWtH of alL of WestERn eURopE. LAbOr uNiONs SuppoRteD the new Policies wiTh pOsTponed wage inCReAses, minimiZed Strikes, suppoRt fOr techNoLogICal moDerNizatIon, and A Policy Of co-deterMiNAtion (MITbestimMUNg), WhicH involved a satisfaCToRY grievance resoLution SySTeM AS weLl aS requiring RePreseNTation oF WoRKERs oN The boards of laRge corporatIOns. the recOvEry WAs acceLeratEd BY thE currency reForm Of June 1948, U.S. gIfts of $1.4 BIllion aS Part of tHe MarsHalL PlAn, thE BrEaKinG dOWn oF OlD trADe bArriers aNd TrAditiOnal PRACTiceS, anD the OpeniNg of the global MarKet. WESt GErmanY gainEd leGiTimacY and reSpect, As It shed the horribLe rePutation GErmAnY haD gAined UNder thE NaZis.

west GerMany plaYEd a CeNTRAl Role in the creation oF EUROpEan coopeRation; IT jOiNEd NATO in 1955 AnD waS a foUNDing mEmbeR Of The EuropEan EcoNOmIc communiTy In 1958.

1948 currEnCy rEfoRm

The MOst dRamatiC and succEssfuL Policy event was THe currency refORm OF 1948. siNCe thE 1930s, pRices and wagEs haD Been ContROlLed, BUt monEy had BeEN pLEntiful. That meant thaT pEople hAd accUmulated large Paper assetS, AND that offIciaL PrICes and wages did Not reFlect realiTY, as the blAck maRket domiNated the eCONomy and mOre ThaN haLf oF ALl Transactions wERE takInG place uNofFiciallY. On 21 junE 1948, thE WeStErn Allies Withdrew ThE oLd CuRreNcy anD Replaced It WitH tHe nEw DeuTSche MaRk at tHe raTe Of 1 NEw pEr 10 old. ThIS wIPEd ouT 90% oF gOverNmeNt And prIvatE DebT, as well As private SavINgs. PRiCeS were deControlled, and LaBor unions aGrEed To accePT A 15% wage incRease, despite the 25% rise in prICes. The rEsuLt was That Prices of GErmAn expoRt pROducts Held stEady, wHiLe pROFits aND EaRniNgS from exporTS SoaRed anD wEre pOured baCk into the economy. ThE CurRency reforms wEre SimuLTAnEouS WiTH thE $1.4 bILliON In Marshall Plan mOney coming In FRoM the United sTatEs, Which waS used prImariLY for invEstment.

In Addition, tHe marsHALl PLan forced GErman comPanies, as wELl as tHOsE in alL of westerN EUroPe, to mOderniZE thEir buSiness PrActiceS and tAkE account Of the international markeT. MarshAll PlAn fUnding helPed OVerCome bottlEnecKs in the surGinG ecOnomy CauSEd by rEmaiNInG coNTrols (WhicH Were removED iN 1949), anD mArShall Plan buSINEss ReforMs oPEned up A greAtly expanded markeT For German exporTs. OvERNigHt, cONsumEr Goods appeared iN thE sTORes, becauSe They could be Sold for rEaLIstic Prices, EmphasIzing to gERmANs that TheiR ecOnomy had tUrnEd A Corner
"). Industrial productiondoubled fr om 19 50to19 57,andgross national prod uct grew at a rate of9 or10 %  per ye ar, p rovidin g  t h e  en gi ne  fo re co nomic  gr owth of  all of We ste rn  Europe. Lab o runions sup por ted the newpol icieswi thp ostpo ned  wage  incre a ses, m inimizedst r ikes,s upportf o rtech nological moderni z at i on, and a poli cy ofco - de t e rmi nat ion (Mitbe st immun g ), whic h  i n v o lve d  a satisfacto ry grievanc e  re soluti on  sy s tem as  well  a s  re quiring rep rese ntation o f work e rs on t h e board s of l arg e c orpo r at io ns.  T h e r e co ver y  wa s accele ra te d bythec u r r ency  re form  of J une 1948, U.S . g ifts of$1.4billi on a spartof the  Mars ha ll Plan, the br eaki ng down o f o ld  tr ad e bar r iers a ndtra ditiona l pract i ces ,a n d  t he opening of thegl o b al  market.  WestG er ma n y gained  l egi tima c y  andresp e ct , as itshed t h eho rriblere putati on  Ge rma ny ha d  gai ned un der theNazis . 

West Germany played a cent r al r ol e  inthe  creation o f Eu r opea n co o pe rat i on; i t joi ne d  N A TO in 1955 and wasafoundi ng me mber of the E uropean Ec o n o mic Comm unit y  i n  1958.

1948 c urren cy reformThe most  dram atic and  successf u l  policyeve ntwas  th e cu rrency reform o f 19 48 . Since  th e 1930s , p ric esand  w ages hadbeen con tr ol le d,  bu t mon e y had be en  pl en tif ul. T h at mea nt th at p eo pl e  ha d accum u la t e d la rg epape r a ss ets,andt hat  offici al prices  an d  wag es  d id notreflect reali ty , as the b la ckmarket d ominated  the economy and more t h an half  of  alltran sactionswer e taki ngp lace u noffic ially .On2 1  June 1 94 8,th e WesternA l lie s wit hd rewthe old  currency and repl a ced  it with thenew  Deu t s ch e M a rk atth e  ra t e  of 1 new per 1 0 old. Thi sw ip ed out 90% ofgo vernmen t and p rivat e  debt,as well a s private  s avin g s . P rices were  decontr olled, an d  labo r  u nions  ag reed t oacc ept a  15% w a geincre ase, d es pite t he 25 %rise inprices. The result wasthat p rices  of  German e xpo r t p roducts h eldsteady, wh ile  pr ofits  an d  earn ings fr ome xport s so a red and w e re  po u r ed  back intot h e  ec onomy . T h e curr ency  reforms were sim u ltaneous withthe$ 1 .4bil l ionin  Marshall Plan  mo ne y coming i nfrom the Un ited Sta te s , whi ch was  usedprimari l y  f o r inve stme nt. 

In addi tio n, the Mar sh al l  Planforc ed  Germa n comp a nies , as well as those  in a l l  of W e ste rn Eu ro pe, tom oder nize their  business p ractic es a nd ta ke acco un t of t hein ternationa l  market.Marsh all Pla nfund ing  helpe d ov e r comebott le nec ks in the s ur g in ge con omycause dby r emainingc ontrols(wh i ch were  r emo v e d in 1 9 49 ) ,  and Marsh all  Plan b usiness re f orms op e ned u p a gr eatlyexpande d  ma rk et forGer m a n exports . Overnig h t,co nsum er goods  a ppea re d i nthe stores, bec ause the y couldb e  soldfor real i stic p ri ces, emphasi zingto Germans t hat  theire con omy  ha d tu rne d ac orner
"). Industrial_production doubled_from 1950 to 1957,_and gross_national_product grew_at_a rate of_9 or 10%_per year, providing the_engine for economic_growth_of all of Western Europe. Labor unions supported the new policies with postponed wage_increases,_minimized strikes,_support_for_technological modernization, and a policy_of co-determination (Mitbestimmung), which involved_a satisfactory_grievance resolution system as well as requiring representation_of_workers on the_boards of large corporations. The recovery was accelerated by_the currency reform of June 1948,_U.S. gifts of_$1.4_billion_as part of the_Marshall Plan, the breaking down of_old trade barriers and traditional practices,_and the opening of the global market._West Germany gained legitimacy and respect,_as it shed the horrible_reputation Germany_had gained under the Nazis.

West_Germany played a_central role_in the creation_of European cooperation; it joined NATO_in 1955 and_was a founding member of the_European_Economic Community in_1958.

1948_currency_reform

The most_dramatic and successful_policy_event was_the_currency reform of 1948. Since the_1930s,_prices and wages had been controlled, but_money had been plentiful._That_meant that people had_accumulated large paper assets, and_that official prices and wages did_not reflect_reality, as_the black market dominated the economy and more than half of_all transactions were taking place unofficially._On 21 June 1948,_the Western_Allies_withdrew the old_currency_and replaced_it with the new Deutsche Mark at_the rate_of 1 new per 10 old._This wiped out 90%_of_government and private debt, as well_as private savings. Prices were decontrolled,_and labor unions agreed to_accept_a_15% wage increase, despite the_25% rise in prices. The result_was that prices_of German export products held steady, while_profits_and earnings from exports soared and_were_poured back into the economy. The_currency_reforms_were simultaneous with the $1.4_billion in Marshall Plan money coming_in from the United States, which was used primarily_for investment.

In addition,_the Marshall Plan forced German_companies,_as_well as those in all of Western Europe, to modernize_their business_practices and take_account of the international market. Marshall Plan funding helped overcome_bottlenecks in the surging economy caused by_remaining controls (which were removed in 1949), and Marshall Plan business_reforms opened up a greatly expanded market for_German exports. Overnight, consumer goods appeared in_the stores, because they_could_be sold for realistic prices, emphasizing to_Germans_that_their_economy had turned_a corner