Returning to the podcast is David Henderson of Stanford University's Hoover Institution and the Naval Postgraduate School in Monterey California.
Our topic for today is the German Economic Miracle. David wrote an article on it for the Concise Encyclopedia of Economics. The article begins as follows:
What caused the so-called miracle? The two main factors were currency reform and the elimination of price controls, both of which happened over a period of weeks in 1948. A further factor was the reduction of marginal tax rates later in 1948 and in 1949."
We discuss the West German economy, before and after WWII, and contrast it with the East German economy. We also discuss some of the interesting figures who played roles along the way: Ludwig Erhard, Wilhelm Röpke, Konrad Adenauer, and Walter Heller.
We wrap up by discussing the Concise Encyclopedia of Economics itself, which David created and has edited since its first publication in 1993.