The many prices of war and occupation: Black markets and the cost‐of‐living index in France, 1938–1949

Patrice Baubeau () and Matéo Teixeira ()
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Patrice Baubeau: IDHES - Institutions et Dynamiques Historiques de l'Économie et de la Société - UP1 - Université Paris 1 Panthéon-Sorbonne - UP8 - Université Paris 8 - UPN - Université Paris Nanterre - UEVE - Université d'Évry-Val-d'Essonne - CNRS - Centre National de la Recherche Scientifique - ENS Paris Saclay - Ecole Normale Supérieure Paris-Saclay
Matéo Teixeira: TRIANGLE - Triangle : action, discours, pensée politique et économique - ENS de Lyon - École normale supérieure de Lyon - Université de Lyon - UL2 - Université Lumière - Lyon 2 - IEP Lyon - Sciences Po Lyon - Institut d'études politiques de Lyon - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - UJM EPE - Université Jean Monnet (EPSCPE) - CNRS - Centre National de la Recherche Scientifique

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Abstract: "When studying French prices between 1938 and 1949, economists and historians face a paradox: whilst a vast black market shaped daily life, official indices recorded only state‐controlled prices. This article addresses the issue by introducing a new consumer price index that incorporates both official and black market prices. Drawing on extensive new data, it quantifies black market activity and estimates household reliance on it. As a result, the price dynamics have been considerably under‐evaluated between 1940 and 1944, and equally considerably over‐evaluated between 1944 and 1948. The index reshapes our understanding of price dynamics by challenging the common narrative that the Vichy regime successfully tamed wartime inflation whilst the postwar democratic regime failed to control it. Instead, the apparent postwar acceleration of inflation is revealed as a statistical illusion. Consequently, we show that real wages dropped dramatically during the German Occupation of France, which proves much more consistent with contemporary testimonies."

Keywords: Black market; France; Cost of living; Political economy; Real wages; World War 2; Price index; Inflation; Price control (search for similar items in EconPapers)
Date: 2026-05-19
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Published in The Economic History Review, 2026, First published: 19 May 2026, ⟨10.1111/ehr.70127⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05629566

DOI: 10.1111/ehr.70127

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