Was the reichsmark of Nazi Germany a debt-free currency?
- RestiveRedheadLv 65 years ago
Are you kidding, this is a trick question right? In 1932 just before the Nazis took over the Weimar Government ran a slight surplus. By 1938 Hitler and his buddies had run up an 87 Billion Reichmark Debt. It would be a lot higher except the Reichsbank issued various types of instruments that were essentially off the books. This "Commercial Paper" was used by the manufacturers to buy what ever they needed to build guns and tanks. They were redeemable to the Reichsbank for cash as needed. Their only purpose was to build arms. You couldn't use them at the local stores to buy food or furniture. What kept the inflation down was the fact that in 1932 the unemployment rate was 37%. Economic activity was almost nil. So there was a huge amount of slack in the economy for the Nazis to exploit before things started to heat up.Source(s): Richard J. Evans "The Third Reich in Power"
- sirbobby98121Lv 75 years ago
No. There are examples of postage stamps with added zeros overprinted to deal with the rampant inflation of the time.
There are also pictures of literally wheelbarrows full of money.