Price Control and Barter in Post-War Germany

Post-war Germany experienced effective price control implemented by occupying forces, which prevented inflation but led to widespread barter as money became underutilized. In this unique economic climate, cigarettes and liquor emerged as alternative currencies, demonstrating how individuals adapted to limited resources and regulations. This situation highlights the remarkable flexibility of economies in response to governmental constraints and the innovative ways people find to conduct transactions. The example illustrates that stringent price controls can lead to unintended economic behaviors, such as a dependence on alternative forms of currency.