Exchange Control in Transition

Abstract

The period from mid-1933 to September 1934 was one of metamorphosis for German exchange control. During this period the outward manifestations of control together with such regulations as were published indicated a re-orientation of monetary and commercial policy. The extent of this change, however, was apparent only at the end of the transition period, September 1934, with the announcement of Schacht’s “New Plan”. Superficially, at least, the transition period can be looked upon merely as a time of increased regulation of foreign trade which was the logical extension of the growth of economic controls under the Nazi regime. The degree of regimentation of German economic life seems to have stemmed from (a) the political and economic commitments of National Socialists to attain full employment, (b) fear of inflation by the government and the population, and (c) the necessity for some diversion of resources and output to achieve political and military ambitions.