AbstractsEconomics

Typewritten MS. During the first world war it was initially believed that a country's wae effort was determined by its financial strength, of which the first factor was the gold reserve. And it was concluded that, because Germany's gold reserves were small, the war effort of that country would soon be exhausted, the war over quickly and, consequently, it was unwise to disturb the economic structure of countries at war for such a temporary event. "Business as usual". Moreover, reparations would indemnify the winner for all losses.[...]