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Leni [432]
2 years ago
8

What impact do the post-war economy, especially inflation from the war

History
2 answers:
Veronika [31]2 years ago
8 0
Falling prices for agricultural goods and rising prices for manufactured goods made life harder.
Assoli18 [71]2 years ago
4 0

Answer:

Explanation: F or more than twenty years, economic development in the Federal Republic has been subject

to two principal factors: steady growth of the

GNP, in real terms, and equally steady creeping

inflation. During the 'fifties, the West German

economy had been growing mostly under conditions of annual inflation rates of 1 to 2 p.c.,

while the price level rose much more rapidly during the 'sixties. After the fifth post-war boom had

reached its summit in spring 1971, the inflation

rate hit a new high of 4.5 p.c., the steepest increase since the Korean War inflation. Against the

acceleration of price rises, the fight is being

waged in the Federal Republic using conventional

methods - monetary and fiscal restrictions. As

an additional measure to meet inflation only recently floating exchange rates were introduced.

Many economists believe, however, that West Germany now lives under the treat of an even deeper

recession than 1966/67 or, possibly, even under

that of an American-type "stagflation",

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