Bernd
10/22/2019 (Tue) 20:06:35
No.30803
del
>>30784The potentially limitless demand wasn't for money itself. Reichsmarks were not a scarce resource, unlike gold and foreign exchange reserves; the regime had as many of them as it wanted to have. The regime didn't care about having the money itself. Its unending demand was for weapons, which were scarce, and that is already an upwards pressure for their price. Then the Reich could, if it wanted to, essentially make money out of thin air to buy them. This money passed on to arms producers which pledged it to purchase capital and consumer goods. Thus, there was also an upwards pressure for the price level of those goods, which restrictions such as rationing and price controls repressed but not with 100% effectiveness. And so with everything rising in price there is inflation.