Marshall Plan
With the Western Allies eventually becoming concerned about the deteriorating economic situation in their "Trizone"; the US Marshall Plan of economic aid to Europe was extended also to Western Germany in 1948 and a currency reform, which had been prohibited under the occupation directive JCS 1067, introduced the Deutsche Mark and halted rampant inflation. Though the Marshall Plan is regarded as playing a key role in the German recovery, its role was more of a psychological than economic nature. Libertarians, particularly, stress the role of Erhard's economic policies, and point out to the detraction of the monetary significance of the Marshall plan that besides simultaneously demanding large reparations payments "the Allies charged the Germans DM 7.2 billion annually ($2.4 billion) for their costs of occupying Germany".
Germany received roughly $1.4 billion in total from the Marshall plan over the years, as loans. However, in 1953 it was decided that Germany was to repay only $1.1 billion of the aid it had received (through Marshall and the previous GARIOA). The last repayment was made in June 1971.
Read more about this topic: Industrial Plans For Germany
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