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Temin, Peter
The Economic history review, 11/1995, Volume: 48, Issue: 4Journal Article
In some accounts the West German miracle was faltering in 1950; it was rescued by an exogenous positive demand shock coming from the Korean War. But the 'Koreaboom' in West Germany never took place. Instead, the Korean War generated problems for the West German economy. A combination of more imports and higher importprices led to the loss of West German foreign reserves, precipitating a balance-of-payments crisis, which tested the postwar relations between victors and vanquished. The European Payments Union kept the postwar European economy away from the discontinuities and adverse changes that characterized the interwar economy
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