Analysis on German Monetary Policy from 1974 to 1990

Minxu Wang,Y Ahn,F Wu

doi:10.1051/e3sconf/202021402007

Abstract

This article analyzes German monetary policy from 1974 to 1990. During this period, Germany experienced rapid economic growth and maintained the inflation rate at an average low level. This article would like to analyze German monetary policy to find the reasons why Germany could have rapid economic growth and maintain inflation rate at an average low level. Then specific main goal, right choices of monetary policy tools and intermediary indicators, and timely adjustment of the policy were found as the reasons. We also learn some successful experience about monetary policy from Germany and apply them in China.

Highlights

This article chooses period from 1973 to 1990
By analyzing German monetary policy, the author would like to learn some successful experience about the monetary policy formulation, implementation and adjustment according to different domestic and foreign economic environments
The result of monetary policy in this stage was that inflation rate decreased year by year, as shown in figure 4 and GDP growth rate increased and grew by 3% in 1978 to 4.2% in 1979, as shown in figure 5, accompanied by unemployment decreased as shown in figure 6

Summary

Minxu Wang

Capital University of Economics and Business, Beijing, 100070, China. Abstract—This article analyzes German monetary policy from 1974 to 1990. During this period, Germany experienced rapid economic growth and maintained the inflation rate at an average low level. This article would like to analyze German monetary policy to find the reasons why Germany could have rapid economic growth and maintain inflation rate at an average low level. Specific main goal, right choices of monetary policy tools and intermediary indicators, and timely adjustment of the policy were found as the reasons. We learn some successful experience about monetary policy from Germany and apply them in China

Introduction

Findings

Conclusion