Implementing this type of policy is not easy within a market economy, even when there is a genuine political will to do so. It is also important to consider the difficulties currently faced by the French plan, whose objectives often have to be abandoned in favor of stabilization policies and the demands of foreign competition and European integration.
When capitalism performs relatively well and the risks of severe crises diminish, governments and economists tend to overlook the benefits of continuously researching ways to regulate and stabilize the national economy. The idea of monetary stability eventually takes precedence over the more complex objective of growth aimed at broader progress. This conflict is not new, and the temptation to periodically repeat experiences such as the Poincaré stabilization remains present. The contradictions between growth and equilibrium are rooted in fundamental economic mechanisms, as illustrated by France’s economic evolution since 1950.
Growth and inflation
When examining France’s economic history since 1950, two key elements stand out. First, the “economic revolution” began immediately after the war and continued through sustained growth. Second, the main difficulty throughout this period was inflation.
The pace of growth
The success of France’s economic growth since 1950 has already been noted. An analysis of statistical data reveals the scale of annual fluctuations in gross domestic product and industrial production.
In 1950–1951, the Korean War strongly stimulated global economic activity due to rearmament efforts and increased demand for raw materials. In 1951, industrial production rose by 12.5%, a rate not reached again in subsequent years. Although growth rates in 1947 and 1948 were even higher, these figures reflect the very low starting point after the war. A similar phenomenon occurred in Germany, where industrial production grew by 48% in 1949.
Such rates, however, are not fully representative, as they typically occur during reconstruction periods when economies recover from severe disruption.
In 1952 and 1953, the first recession significantly reduced growth rates. Industrial production nearly stagnated, increasing by only 1.1% in 1952 and 1% in 1953, although the trend remained slightly positive.
This was followed by a four-year period of strong expansion from 1954 to 1957. Recovery began at the end of 1953 and was supported by export incentives, rising hourly wages, and improved agricultural incomes due to favorable harvests.
During these four years, industrial production grew at an average annual rate of around 10%, marking one of the most dynamic phases in France’s industrial history. Growth rates in France even surpassed those of Germany in 1956 and 1957. All industrial sectors contributed to this expansion, though to varying degrees. The most dynamic sectors included chemicals, automotive, aluminum, aerospace, construction, and electrical industries. Passenger car production increased from 370,000 units in 1952 to 648,500 in 1956.
In 1958–1959, a new recession occurred, though at a global level it represented more of a slowdown than an actual decline. In 1960, economic activity accelerated again, with GDP increasing by 8% and industrial production by 11.4%.
From that point onward, growth continued, although with a slight moderation in industrial expansion—a trend also observed in Germany and other industrialized countries.
These figures summarize the overall trajectory of France’s economic development since 1950, characterized by continuity rather than interruption. However, this overview does not explain the deeper causes of cyclical fluctuations, particularly the mechanisms and consequences of inflation, which require further analysis.
The second plan (1954–1957) differed from the first, as reconstruction had already been completed. Its time horizon was reduced to four years, and the development of national accounting made it possible to address issues of economic coherence with greater precision. The primary objective became the “harmonization of growth,” aiming to achieve maximum expansion compatible with both internal and external balance.