Inflation

To cater for cash flow needs, the conquerors collaborated with occupation governments in the mass circulation of inflationary money. Bills of ever greater value constantly appeared on the market, but the lack of commodities reduced their actual spending power. Those citizens as could preferred to barter, and gold sovereigns became highly sought after.

Indicative of this state of affairs was the price of the "Kritikos Kyrix" [Cretan Herald], the pro-German newspaper circulating in Heraklion during the occupation. In August 1941 a single issue cost 3 drachmas, but by December 1943 it had reached it 2 000 drachmas. The situation was totally out of control in 1944, when the first issue of "Eleftheri Gnomi" [Free Opinion], which came out in a liberated Heraklion on Thursday 12^th October, cost 5 000 000 drachmas.