4 ms·
Printing money don't lead to hyperinflation unless you also can't sell anything (either because you don't produce or because nobody is buying). Again, since i
by orwin 6y ago
Printing money don't lead to hyperinflation unless you also can't sell anything (either because you don't produce or because nobody is buying).
Again, since i don't know why people believe that (even orthodox economists agree on that): printing money alone don't cause inflation to run away. It can cause a big inflation and make people who have money in the bank/ on the side loose a lot, sure. No hyperinflation, not alone at least.
Hyperinflation have confounding factors, one being being unable to sell (Venezuela, Zimbabwe) another being unable to produce enough (Weimar republic in 23). Also my country not invading the Weimar republic for fun and giggles would have helped much more against Nazi propaganda than preventing hyperinflation. Hyperinflation did not cause a famine in Germany. Lack of food caused a famine in Germany, and also in Austria, Poland, USSR, probably Greece and Ottoman Empire (i'm mostly focused in Northern europe history so if someone that extensively studied this area during this time period can correct me, i'd like that, i know a lot of people studied the rise and fall of the Ottomans). Because its what a lack of food does.
Incidentally, my late grandfather was born in august 23 and he was told this was the first good harvest year since 1914. I have to look into it but the French government probably decided to store excess grain to refurbish the depleted stocks, and did not help their neighbors much.
Anyway, printing money does not cause hyperinflation. This is a usefull myth for the masses since printing money reduce "our" asset size (mine too, i'm rich now!).
- selimthegrim 6y agoYou might want to check the book by Fromkin, Peace to End All Peace (1989)