And from this point of view the problem facing the Reich authorities was a classic problem of macroeconomic management: how to regulate the total volume of demand so that the key priorities of armament and autarchy were met, whilst at the same time ensuring that Germany did not slide into inflation? The problem facing the Reich Ministries was a problem of excess demand. After allowing for consumer expenditure, financed directly out of household income, the total volume of planned government spending and business investment on the one side of the equation substantially exceeded the available
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