75 years after the currency reform: Olaf Scholz promises a new economic miracle

75 years after the currency reform: Olaf Scholz promises a new economic miracle

June 20, 2023 marks the 75th anniversary of the West German currency reform. It resulted in an unexpected economic miracle and a broad middle class emerged. Ludwig Erhard, who was Economics Minister of the Federal Republic of Germany from 1949 to 1963 and is considered the father of the social market economy, rightly gave his book published in 1957 the title “Prosperity for All”. However, few Germans seem to believe Chancellor Olaf Scholz's promise today that the green transformation of the economy will bring a new economic miracle.

The planned “green transformation” of the economy under the leadership of Chancellor Olaf Scholz apparently arouses skepticism among many Germans as to whether it will actually lead to a new economic miracle. According to a report by www.welt.de, Germans are skeptical about the promised economic recovery. This skepticism could have an impact on various areas of the financial industry.

Impact on the market

The lack of credibility of the promised economic miracle could lead to uncertainty on the market. Investors may be hesitant to put money into projects planned as part of the green transformation. This could lead to a decrease in investment and a resulting decline in economic growth.

Impact on the financial industry

Public skepticism could also lead to a more cautious approach to financing and investment issues. Banks and other financial institutions could become more reluctant to lend, which could have a negative impact on the economy. In addition, financial products that are related to the green transformation could become less attractive.