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Abstract

The German economy is currently known to be an economic powerhouse of the present, but it is a mystery to most as to why this is so. By investigating historical examples, we can determine whether proposed economic policy will work, and Germany proves useful to this idea through the continued historic usage of Eucken and Erhard’s economic theories that generated the German economic miracle (Wirtschaftswunder). Germany has survived dark economic collapse and become thriving economic powerhouse today. This proliferation of success is through the three consistent pillars of their macroeconomic profile, balanced fiscal budget, maintaining price stability, and always allowing for the flexibility of price and wages, inspired by Eucken and Erhard.

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