Originally posted by Tripledoc
And I would say that a deficit is very important - especially because inflation set in before the war. When the Nazi territory expanded the Reichsmark became legal tender in the occupied territory, significantly reducing the effects of inflation - since the excess in money was made good by adding a larger area of circulation. It might then be said that the deficit was only important in that it meant war would be inevitable.
If for instance Nazi Germany had become involved in a long war in France, it would have meant that the German economy would have crashed very soon.
And I would say that a deficit is very important - especially because inflation set in before the war. When the Nazi territory expanded the Reichsmark became legal tender in the occupied territory, significantly reducing the effects of inflation - since the excess in money was made good by adding a larger area of circulation. It might then be said that the deficit was only important in that it meant war would be inevitable.
If for instance Nazi Germany had become involved in a long war in France, it would have meant that the German economy would have crashed very soon.
Comment