This could be due to the Housing Act of 1950, in which the West German government provided publicly subsidised housing and granted major tax breaks to developers (Diefendorf, Frohn and Rupieper 1993). Overall, our results coincide with Deutsche Bank`s observations (January 1963 report, 47) that debt repayment under the LDA largely determined the price of public investment and expenditure in the German economy and freed up new resources for new public investment through debt repayment (or cancellation). Moreover, as we say in the next section, repayments have really contributed to the easing of the balance of payments, which has allowed Germany to accumulate foreign exchange reserves and reduce potential financial constraints on the balance of payments (Eichengreen and Ritschl 2009). In Table 5, we also use a diD model with the natural logarithm of the CPI in Western countries between 1946 and 1969. 62) also examines that “the position on investment returns has improved significantly compared to the previous year. This is due to an increase of more than DM 200 million in revenue, mainly composed of interest from the Bundesbank, while income payments to foreigners remained virtually unchanged. .