Cigarette Money-Trading in a Pow Camp
“Cigarette Money- Trading in a Prisoners-of-War-Camp”
1) Introduction
This paper focuses on the analysis of the Prisoners-of-War Camp (POW Camp from now on) as depicted by R.A. Radford regarding various economical matters and behavioural aspects of its inhabitants. First of all the organisation of the POW Camp itself will be explained with a secondary focus on the extent, to which organisational structures foster a functioning market. Afterwards the emergence of cigarettes as a currency in the market of the POW camp will be examined with a detailed focus on a comparison between the properties of an ideal currency and properties of cigarettes as a currency. This examination will be followed by research on the validity of Gresham´s Law in the POW Camp´s market. Finally this paper will analyse the reaction on market shocks by the market of the POW Camp in comparison to the Asset Pricing Market.
This topic is of economical significance, because the POW Camp resembles a good example of a Robinson Crusoe economy that once was to be found in reality. Therefore basic market mechanisms and certain economic matters such as trade and market shocks can be examined in detail without distractions from the core focus on the issue.
2) Organisation of a Prisoners-of-War Camp
In this section a rough overview of the organisation of the POW Camp will be given. It will also be determined which features of the organisation of the POW Camp support the functioning of the market in the POW Camp.
The author spends his war captivity after his caption during World War 2 in three different POW Camps. After two short stays in transit camps in Italy and Germany the author reaches his permanent camp in Germany after one month. This camp is a so-called Oflag. Oflag means “Offizierslager” in German and means officer camp. Officer camps are constituted by 1,200-2,500 prisoners living in houses, that have a capacity of about 200 people. The author stays in this camp from the end of 1943
1) Introduction
This paper focuses on the analysis of the Prisoners-of-War Camp (POW Camp from now on) as depicted by R.A. Radford regarding various economical matters and behavioural aspects of its inhabitants. First of all the organisation of the POW Camp itself will be explained with a secondary focus on the extent, to which organisational structures foster a functioning market. Afterwards the emergence of cigarettes as a currency in the market of the POW camp will be examined with a detailed focus on a comparison between the properties of an ideal currency and properties of cigarettes as a currency. This examination will be followed by research on the validity of Gresham´s Law in the POW Camp´s market. Finally this paper will analyse the reaction on market shocks by the market of the POW Camp in comparison to the Asset Pricing Market.
This topic is of economical significance, because the POW Camp resembles a good example of a Robinson Crusoe economy that once was to be found in reality. Therefore basic market mechanisms and certain economic matters such as trade and market shocks can be examined in detail without distractions from the core focus on the issue.
2) Organisation of a Prisoners-of-War Camp
In this section a rough overview of the organisation of the POW Camp will be given. It will also be determined which features of the organisation of the POW Camp support the functioning of the market in the POW Camp.
The author spends his war captivity after his caption during World War 2 in three different POW Camps. After two short stays in transit camps in Italy and Germany the author reaches his permanent camp in Germany after one month. This camp is a so-called Oflag. Oflag means “Offizierslager” in German and means officer camp. Officer camps are constituted by 1,200-2,500 prisoners living in houses, that have a capacity of about 200 people. The author stays in this camp from the end of 1943