HIST105 Study Guide - Marshall Plan, Reichsmark, Decartelization
Document Summary
In order to facilitate growth, america advocated for economic reforms within west germany. Plan resulted in the pursuit of currency reform as it, reaffirmed the undeniable link between the value of the currency and economic stability. By ensuring only one bank developed monetary policy for the nation, the new federal bank stabilized and structuralized monetary policy of west germany. The new currency introduced by the bank removed all unsupported reichsmark, thereby strengthening the economy by restoring, confidence in the currency, and its viability in the international market. Furthermore, the money given to west germany was directly responsible for the growth in industrial outputs, which culminated to an increase in production, thereby increasing the gdp, which is indicative of a stronger, growing economy. Historian alexander deconde argued that the aid helped stabilize economies and raise production [levels] well above prewar figures, 1 therefore, expediting economic growth in the region.
