materials, Schacht wanted to repress domestic demand, whilst boosting exports. Rearmament in the widest sense would have to accommodate itself to this wider reallocation, since without imported materials and food the German economy would simply grind to a halt. A devaluation would have provided a market mechanism for achieving this goal, reducing the foreign prices of German exports and raising the cost of imported goods. But, having rejected devaluation, the regime was forced, as in 1934, to resort to increased bureaucratic regulation.
