Subjects Description Within a few short months inAsian economies that had been considered not only healthy but "miraculous" suddenly fell off a precipice as investors withdrew massively first from Asian currencies and, in rapid order, from equity markets across the region. On October 27the turmoil in Asian markets spooked Wall Street in the largest single-day decline in history, a drop of points. These wrenching changes, following a generation of success, raise numerous questions about the steps that led to the crisis, its likely outcome and the limits and constraints of "Asian capitalism".
German Economic "Miracle" [An updated version of this article can be found at German Economic "Miracle" in the 2nd edition. The war, along with Hitler's scorched-earth policy, had destroyed 20 percent of all housing. Food production per capita in was only 51 percent of its level inand the official food ration set by the occupying powers varied between 1, and 1, calories per day.
Industrial output in was only one-third its level.
Moreover, a large percentage of Germany's working-age men were dead. At the time, observers thought that Germany would have to be the biggest client of the U.
Yet twenty years later its economy was envied by most of the world. And less than ten years after the war people already were talking about the German economic miracle. What caused the so-called miracle? The two main factors were a currency reform and the elimination of price controls, both of which happened over a period of weeks in A further factor was the reduction of marginal tax rates later in and in Before By the German people had lived under price controls for 12 years.
Adolf Hitler had imposed them on the German people in so that his government could buy war materials at artificially low prices. Roosevelt and Churchill also imposed price controls.
Each of the Allied governments controlled a "zone" of German territory. Yet inthe amount of money in the German economy—currency plus demand deposits—was five times its level. With money a multiple of its previous level but prices only a fraction higher, there were bound to be shortages.
Price controls on food made the shortages so severe that some people started growing their own, and others made weekend treks to the countryside to barter for food.
Each day, and particularly on weekends, vast hordes of people trekked out to the country to barter food from the farmers. In dilapidated railway carriages from which everything pilferable had long disappeared, on the roofs and on the running boards, hungry people traveled sometimes hundreds of miles at snail's pace to where they hoped to find something to eat.
They took their wares—personal effects, old clothes, sticks of furniture, whatever bombed-out remnants they had—and came back with grain or potatoes for a week or two. Barter also was so widespread in business-to-business transactions that a new job title in many firms was that of "compensator.
In September U.
Barter was very inefficient compared to straight purchase of goods and services for money. German economist Walter Eucken wrote that barter and self-sufficiency were two things that were incompatible with an extensive division of labor. In March bizonal production was only 51 percent of its level in The Debate Eucken was the leader of a school of economic thought based at Germany's University of Freiburg.
The School was called Soziate Marktwirtschaft, the "socially conscious free market. Cartels in Germany had been explicitly legal before the war. The Soziale Marktwirtschaft was very much like the Chicago school, whose budding members Milton Friedman and George Stigler also believed in a heavy dose of free markets, slight government redistribution through the tax system, and antitrust laws to prevent monopoly.
To clean up the postwar mess, Roepke advocated currency reform so that the amount of currency could be in line with the amount of goods, and abolition of price controls. Both were necessary, he thought, to end repressed inflation.The analysis focuses on Asian economies that are expected to sustain their growth and adopts a vector auto‐regression model with Granger causality and impulse response tests.
The . most recent book is Peddling Prosperity: Economic Sense and Nonsense in the Age of Diminished Expectations.
This economic analysis had two crucial implications. First, most The Myth of Asia's Miracle you," it was an economic rather than a military boast. It is therefore a shock to browse through, say, issues o£ Foreign Affairs from the. Although there are currently studies of comparable Japanese and Korean organizations, this is the first detailed analysis of the internal structure and functioning of the economic development body of Singapore, a key player in the Asian and world markets.
Chapter Monitoring Characteristics of the Main Bank System: An Analytical and Development View Theory, Corporations and East Asia. The death of Lee Kuan Yew, the founding father of modern Singapore, has focused attention on the economic miracle he helped to create.
In the three decades since Lee first became prime minister in. I have serious reservations about Krugman’s ivory-tower analysis of the Asian miracle. First, his comparison to the Soviet Union is attention-getting, but fundamentally flawed.
The Soviet Union was primarily a command economy, the Asian nations free economies.