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Mikael Olrog
4th November 2005, 13:31
I've been pondering over the relative value of the Reichmark over time, in relation to aircraft sales. I've seen an example of when an aircraft was offered for sale before the war broke out for a certain price, and then several years in to the war, the same aircraft type - now second hand - was sold to German allies for a higher price than the aircraft was offered for before the war.

This could indicate that the RM suffered from Inflation and that the price asked for in 1944 was in reality lower than the asking price pre-outbreak of the war. Has anyone seen a chart of how the value of the RM developed from 1933 to 1945, and possibly in relation to other currencies, like USD or £?

Another explanation for the difference in price could be that RLM subsidised aircraft sales before the war to get much needed foreign currency and that during the war they took advantage of their allies desperate need for equipment and charged as much money as they could.

What are your thoughts?
Best wishes
/Mikael Olrog

Graham Boak
4th November 2005, 13:57
It could also be a function of the RLM's need for aircraft themselves, using a higher price as a dissuading tactic. Aircraft prices are rarely separable from the politics of the time.

Juha
4th November 2005, 13:59
Hello Mikael
I have one table, it's based on wholesale prices.
Germany 1923=100
.
.
.
1933 108
1934 114
1935 117
1936 120
1937 122
1938 122
1939 123
1940 126
1941 130
1942 131
1943 134
1944 134
1945 ..

The inflation in Germany, which with its 4 years plans was much more "planned" economy, was lower than in USA and much lower than in GB.

HTH
Juha

Mikael Olrog
4th November 2005, 14:53
Dear Juha and Graham,

Thanks for quick replies.

Graham, The aircraft I thought of was obsolete training aircraft, so it was no first line fighters or similar which should have been thought after. The type was scheduled to be taken out of service to reduce the number of types in service.

Juha, The list was indeed of interest to me, thanks!

/Mikael

Sergio Luis dos Santos
4th November 2005, 17:37
Dear Juha and Graham,

Thanks for quick replies.

Graham, The aircraft I thought of was obsolete training aircraft, so it was no first line fighters or similar which should have been thought after. The type was scheduled to be taken out of service to reduce the number of types in service.

Juha, The list was indeed of interest to me, thanks!

/Mikael

Mikael, maybe in this case they just wanted to obtain as much money as possible from a potential buyer with money to use. It´s like you want aircraft and have money to pay but can get them only from us?!

Franek Grabowski
4th November 2005, 17:57
Please note, that statistical inflation may have nothing to actual inflation. Statistically, Polish currency was quite stable in the 1980s but actually, as proven eg. by course of USD on blackmarket, inflation was alarmingly high.

Juha
4th November 2005, 19:45
Yes Franek, it's difficult to compare "planned" economies to more "free market" economies. IIRC in Nazi Germany there was no USD black market more like barter black market. And of course if there was not enough commodities but plenty of money, some of commodities went to black market to be sold at higher than official prices. And probably those black market prices went up during the war but how much? But I think that those black market prices didn't have impact on a/c prices in Germany.

Juha

Sergio Luis dos Santos
4th November 2005, 20:41
Thinking on inflation levels... well, which parameters were used to calculate it? I have an example here in Brasil. Official inflation is low, very low when compared with 80´s as example but we know that some prices goes higher than the official numbers. As example light, water, basement, government taxes as well as the "non basic" food items... So there is an official number that is used on some calculations (like my payment!) and the real one we feel every day when paying our bills or buying some items. Maybe this is the same with the aircraft prices. Didn´t Germany industry fought against lack of raw materials? So I guess the pricing of those items went higher and higher as years progressed so it may explain their higher prices. Even being older aircrafts they could have sold them with updated prices based on the actuall costs for new ones.:weary:

Juha
4th November 2005, 23:07
One can calculate inflation on different basis, the wholesale price index gives probably best overall picture but there is also consumer goods index which is probably most relevant to average person, building cost index etc.
German had "planned" economy, state allocated most raw materials and workforce. As long as Göring was the plenipotentiary of 4-years plans, not surprisingly LW was a favorite in these allocations. Later when Göring's influence vaned situation got more complicated. But in principle the state controlled prices of raw materials.