ABSTRACT
T H E stagnation of the German economy until 1948 and its lack of contacts with the rest of the world were of course due primarily to the absence of a sensible internal economic order and of a reliable currency. Even if it had been run by German super-patriots, J.E.I.A. could hardly have effected a greater volume of trade. Until 1948 other countries in Europe were not doing much better, despite large American subventions. The Continent generally was dominated, deliberately or otherwise, by a nationalistic isolationism, distorted by open or camouflaged inflation, by bilateralism, and by a deceptive prosperity. Many countries aimed at a maximum production without consideration for their neighbours. In consequence nationalist investment policy led to the duplication of numerous industries, a process which continued during the first years of the Marshall Plan.
