SCHACHT'S REGULATION OF MONEY AND THE CAPITAL MARKETS.

The article discusses the regulation of money and capital markets in Germany from 1933 to 1938. Central bank policy during that period focused on four aims, including the regulation of the money market, use of capital markets for the sale of government debt, determining supply and demand for seasoned government bonds, and maintaining low interest rates. The author discusses each policy objective in turn, and notes how German bank officials miscalculated the willingness of the Nazi regime to scale back on armaments once German economic power had been re-established.