Before World War II, Germany was a state revered for its development characterized by exceptional infrastructure, beautiful cities and factories. However, the outlook would change drastically after the ferocious World War II. In the aftermath of the war, Germany was no longer the state it once was, but a crumbling country with no sign of recovery. In addition to the destruction of beautiful cities, factories and infrastructure, Germany also lost its sovereignty. Apparently the United States, France, the Soviet Union and Great Britain occupied the country and subjected it to strict rules. The devastation caused by the war seemed to condemn Germany to an incredibly long road to recovery, yet an “economic miracle” occurred. Since this economic event has amazed everyone, it is necessary to delve deeper into the topic. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay The first step towards the seemingly miraculous economic recovery was caused by the currency reforms initiated in 1948. German currency, the Reichsmark. The government replaced the worthless Deutsche Mark with the Deutsche Mark and managed to control the hyperinflation and monetary devaluation caused by the old currency. Furthermore, the reforms contributed to the elimination of the black markets on which most Germans relied for food supplies. Subsequently, a favorable relationship was created between money in circulation and available goods. In short, West Germany recovered quickly – not miraculously – by replacing a worthless currency, tackling inflation, and ensuring a balance between goods and money in circulation. Secondly, the relaxation of the rules by the Allied forces and the involvement of all Germans were essential to the recovery. The West German government engaged in activities that suggested prosperity was for all people. Furthermore, the Allied forces allowed the country to revive some of its industries, contrary to a previous position. As a result of these and other positive changes, foreign investors began to invest in the country, thus accelerating economic growth. Ultimately, the country's economy grew at a pace that no one had predicted, so much so that it was called a miraculous recovery. Furthermore, the abolition of price controls imposed on the Germans by Adolf Hitler contributed to the rapid economic recovery. Until 1948, all Germans had endured a tumultuous time caused by the tyrant's price controls. Hitler's government purchased all the weapons at a ridiculously low price but controlled the consumer products. Inevitably, stock markets crashed and free market principles all but ceased to operate in the country. However, with the abolition of price controls, Germany experienced a sudden change. During the 1950s, West Germany's gross national product (GNP) grew at a rate of between 7% and 8%, and its export earnings rivaled those of the United States. The new German government would only intervene in the markets to block cartels and curb monopolies. Remember: this is just an example. Get a custom article from our expert writers now. Get a Custom Essay In summary, the stunning economic recovery in Western Germany can be traced to the three crucial decisions made by the new government. First, currency reforms were instrumental in turning the economy around as they addressed inflation and the circulation of money. Second, changing highly punitive marginal taxes and the..