--Frank in Frankfurt
Dear Frank:
Not only is it true, but an entire system of currency rose up around this humble comestible, since the East German mark had the disadvantage of being not only worthless but inedible. Butcher stores rapidly became commercial banking centers, posting the day's exchange rates for the knockwurst against the dollar, franc and yen. Butchers themselves became the richest people in most communities, often referred to as the head cheese out of respect. It affected all levels of society: beggars in the streets would ask for spare wieners, and children, of course, used bratwurst as play money.
For smaller purchases this was quite convenient, although the vending machine trade was obviously doomed. Larger purchases required another system, since even the largest denomination of sausage ("die DirkDigglerwurst") required far too many units to be practical. Kolkutz Kredit AG therefore issued cards with links to a person's account at a local butcher shop, and people in stores were often asked if they were paying for their purchase with "pâté or plastic."
After the reunification of Germany the sausage economy died out, although in remote towns you will still see signs in stores claiming to give you the best for your wurst.
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Reference: "From Baden to Wurst: East German Monetary Policy, 1946-1990" by O. Meyer and J. Dean (London & Bombay, 1994)
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