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Purchasing Power

Volume 437: debated on Monday 12 May 1947

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asked the Secretary of State for Foreign Affairs what steps he contemplates taking to restore faith in the present currency in the British zone of Germany and to check the widespread black market resulting from doubt as to the ultimate value of money now in circulation.

This subject, which affects the whole of Germany, is still under discussion by the four occupying powers. Meanwhile increased taxation and reduced public expenditure has enabled us to reduce the note circulation. In the combined British and American zones the steps being taken to increase German production for home consumption as well as for export, should go some way to relate more closely the quantity of goods in the home market with the purchasing power available to the Germans.