When money becomes an instrument for politics

The German hyperinflation of 1923 is a formative historical event that should be understood as a warning today. If the stability of the value of money is sacrificed to political goals, there is a threat of complete collapse, not only of money, but of society.

Although the circumstances between 1914 and 1923 are fundamentally different from anything that can be foreseen today, the basic mechanisms of money and the motives for action of the actors of that time are timeless. If banknotes are only used to wallpaper the apartment or light the stove, it is so extreme that it seems downright abstruse. The path to this is paved with opportune political decisions.

This study is available in German only.