Without a central bank you can use inflation a means of shedding your debt burden. And the Germans (a nation of savers) hate inflation. Getting out of crushing

Without a central bank you can use inflation a means of shedding your debt burden. And the Germans (a nation of savers) hate inflation. Getting out of crushing debt burden (if the debt is denominated in local currency) by inflation is not really a great solution. But in many cases it the best of bad solutions. Everybody locally suffers from inflation equally (proportionally). ... With the exception of foreign lenders who lent money in local currency suffer the most (wrong side of FX). But again that might be the least bad option. It's the same idea as high hotel and travel taxes (parking, car rentals, cabs from airport)... Because the best tax is the one you don't have to pay yourself, instead it's the tax that people who don't live here pay. And, that's because they don't vote here. Also, I'm not talking about runaway inflation. But higer the the gold standard of ~ 2%. if you look at Greece. They would probably be a good candidate for the servicing debt via inflation as the least bad option. Except they don't have that option anymore. Instead the lender countries are going to keep pretending for the next 10 years that they will see all their money back. And they'll do that but lending more money to Greece and making it poorer at the same time. You know, ze Germans.