Germany's post-World War II government was riddled with former Nazis

government seeking faster European unity to French politicians eager to weld the German and French economies together so tightly that neither could ever afford to begin a war again--pushed western European economies into more open configurations with higher import and export shares of national product.

The post-World War II occupation of Germany was a huge and ..

Thus post-World War II Argentina saw a huge rise in the price of capital goods.
Photo provided by
Flickr

Out of the Ashes A New Look at Germany's Postwar Reconstruction

But the work remains sensitive. , although it is well-known in Germany that Hans Globke, the long-serving chief of staff to Konrad Adenauer, postwar West Germany’s first chancellor, had in the 1930s helped devise the anti-Semitic Nuremberg Laws.

Aftermath of World War II - Wikipedia

But because the spoils of empire from defeated Germany, Austria-Hungary, and Turkey were small, the post-World War I prosperity in the victors was short-lived and anemic.

What were the sources of such rapid post-World War II western European growth?
Photo provided by
Flickr

Post-World War I peace conference begins in Paris - Jan …

When the war broke out on July 31, 1914, the Reichsbank (German Central Bank) suspended redeemability of its notes in gold. After that there was no legal limit as to how many notes it could print. The government did not want to upset people with heavy taxes. Instead it borrowed huge amounts of money which were to be paid by the enemy after Germany had won the war, Much of the borrowing was discounted and monetized by the Reichsbank. As explained later, this amounted to issuing straight printing press money.

The top resource for World World 2 information on the Internet

Especially in an economic crisis or a war, the pressure to inflate becomes overwhelming. Any alternative may seem politically disastrous. Whether it be the Roman emperors repeatedly debasing their coinage, the French revolutionary government printing a flood of assignats, John Law flooding France with debased money, or the Continental Congress issuing money until it was literally "not worth a Continental," the story is similar. A government in financial straits finds its easiest recourse is to issue more and more money until the money loses its value. The entire process is accompanied by a barrage of explanations, propaganda and new regulations which hide the true situation from the eyes of most people until they have lost all their savings. In World War I, Germany -- like other governments -- borrowed heavily to pay its war costs. This led to inflation, but not much more than in the U.S. during the same period. After the war there was a period of stability, but then the inflation resumed. By 1923, the wildest inflation in history was raging. Often prices doubled in a few hours. A wild stampede developed to buy goods and get rid of money. By late 1923 it took 200 billion marks buy a loaf of bread.

Feature Articles - If Germany Had Won World War 1..

We have no quarrel with the German people. We have no feeling towards them but one of sympathy and friendship. It was not upon their impulse that their government acted in entering this war. It was not with their previous knowledge or approval.

SparkNotes: World War I (1914–1919)

Yet post-World War II western Europe saw a rapid dismantling of controls over product and factor markets, and the restoration of price and exchange rate stability.

What If Nazi Germany Won World War II

But the main force which gave inflation its momentum was the steady decrease in the true value of money in circulation. This has been observed in all past rapid inflations and it is vital to understand it if inflation is to be coped with. During the war, as we saw, the price inflation lagged behind the rate at which money was issued. But now, as people lost confidence, prices began jumping much faster than the government could generate new money. Thus the total circulating currency fell drastically when measured in terms of its true value. One economist stated that, "In proportion to the need, less money circulates in Germany now than before the war. This statement may cause surprise but it is correct. The circulation is now 15-20 times that of pre-war days, whilst prices have risen 40-50 times." In fact, the total currency when calculated in gold value fell from 7428 million marks in January 1920 to a mere 168 million by July 1923.