The price of goods rose as wages decreased
After the end of World War II, Soviet forces occupied the country, seeking dominance of their Socialist Ideology, and there they stayed throughout the Cold War.
Occupying it was how they managed to take control of this portion of the country. Their ideological war against the United States' Capitalism was how they managed to maintain control of the area.
During this period the Berlin Wall was built, and it marked the division between Western and Eastern Germany.
Governments need to have good laws, institutions and processes in place to ensure accountability, stability, equality and access to justice for all. This ultimately leads to respect for human rights and the environment. It also helps lower levels of corruption and instances of violent conflict.
