The balance of payments problem Flashcards
1
Q
What 2 underlying problems did the German economy have?
A
- An increase in demand could cause inflation
2. There could be a balance of trade deficit
2
Q
When did balance of payment problems emerge?
A
Summer 1934
3
Q
What did the Economics Minister Schmitt want and how?
A
To reduce unemployment
Manufacturing more consumer goods
4
Q
What were big business and the army demanding?
A
More resources for rearmament
5
Q
What happened to Schmitt’s policy?
A
It was rejected due to too much pressure
6
Q
What did the new Economic Minister Schacht combine?
A
Offices of Minister of Economics and President of the Reichsbank.
