A.) I thought it was interesting that everything in the economy as described by the author arose because of their "immediate needs and circumstances" (p. 190). Basically, everything came about because of a need in that particular sector. Even more amazing is the fact that no one orchestrated this movement towards the desired goal; it just came about as one would expect from a typical market. For example, prices for everything experienced inflation whenever more rations (of cigarettes) were delivered to the inmates. This excess in cigarettes caused the prices to rise substantially. But as a lot of these cigarettes began to disappear for non-monetary reasons, i.e. people who needed to smoke, prices experienced steady declines until the next truckload came in. It was clear that machine-made cigarettes were subject to this rising and falling of prices if used as currency, so a new currency was perhaps in the making. This coupled with the formation of a new restaurant introduced a new currency called the Bully Mark. But later when the camp was bombed, the value of cigarettes and food sharply increased, and thus the relative value of the BMk decreased. The cycle continues as more external disruptions are introduced and the economy adjusts accordingly. For this reason, we can say that the economy that arose in a POW camp is, at least in this way, the same as today's markets/economy.
B.) What makes the cigarette the most effective means of exchange in the camp?
What sorts of supplies did inmates have access to prior to the formation of the economy and how did their values change as a result of disruption?
How long did it take for the prices of certain items like bread to settle and how often did they fluctuate?
C.) This article was assigned to demonstrate the effects of the market system, even when no markets exist. It also demonstrates the effects of supply and demand and inflation on the price system.
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