Erhard, Ludwig
July 1958
Foreign Affairs;Jul58, Vol. 36 Issue 4, p611
Academic Journal
This article discusses the author's comments on Germany's economic policy. "I am generally called the father of the social market economy, and this is true to the extent that, in addition to being one of the engineers of the currency reform, I developed the principles of the new German economic policy and put it into practice, above all on the political level; but praise for the success of the policy must go in the last analysis to the honesty and indefatigable efforts of all classes of the German population. " " The German economic policy entered one of its most dangerous phases when the credit margin which had been granted to the Federal Republic within the European Payments Union was exhausted. I was called a careless debtor and a gambler because I admitted imports beyond the extent of possible exports; but this I did quite deliberately in order to increase German productive capacity and create more jobs for German labor. The result was strange. Hardly had the additional credit margin granted to the Federal Republic been used up before the debts could already be paid back."


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