The Nazi Economic Recovery 1932–1938 by R. J. Overy

By R. J. Overy

This can be a absolutely revised and up to date version of R.J. Overy's extremely popular survey of the Nazi fiscal restoration (first released through Macmillan in 1982). The functionality of the German financial system less than the Nazi regime has been the topic of severe educational debate. Overy discusses the most components of this debate, arguing that the warfare practise that happened at the present used to be eventually incompatible with long term financial restoration, and that the German fiscal miracle didn't take place until eventually after 1945.

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7 billion and by 1936, at 9 billion marks, it exceeded the peak year of the 1920s. The bulk of the construction was in residential housing (28 per cent) and road construction (21 per cent). The linkages established through construction with the rest of the economy were like those generated by motorisation. Demand 49 increased rapidly for building materials and heavy machinery, for light tools and, in the case of motor vehicles, for more specialised industrial raw materials. The employment effects were also important.

German trade continued to be predominantly with western Europe and Latin America and the Middle East. 9 per cent of German exports in 1935 and even by 1938, under growing political pressure from Germany, this figure had only risen to 11 per cent. The figures for total German trade are set out in Table VI. 0 Source: [59: 483]. There was another disadvantage in Germany' s growing isolation from the world market. The full effect of the fall in world prices, particularly of foodstuffs and other raw materials, was not passed on to the German consumer as it was in other advanced economies.

7 Source: ['22; 67; 44: 255-6; 50: 23. 38] . •• Negative net investment. 3 which the engine of growth was once again technological change. Landes and Svennilson both emphasise the importance of productivity growth and the 'new industries' for explaining what growth there was in the inter-war period [47, 86]. In the German case this would be amistake. High investment levels did not lead to a corresponding increase in industrial productivity. 3 per cent, a quarter of the levels achieved in the 1950s.

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