The more territory Adolf Hitler takes, the more his financial ministers have to worry about. Last week they announced a desperate "New Financial Plan" which illustrates why German economists have grey hair.
The plan was both complicated and risky. In its simplest terms it was intended to work as follows: The Government will issue fiat money (paper without gold or silver backing) to pay the Heinkel works, say, for airplanes. Next year when Heinkel comes to pay corporation taxes, it pays not in cash but in the fiat certificates. Meanwhile Heinkel may, if it wishes, use the certificates to help pay for...
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