4 ms·
I'm far from an expert, but my understanding was that Weimar Germany did cause hyperinflation by printing Deutschmarks. But there's a really interesting point h
by md_ 5y ago
I'm far from an expert, but my understanding was that Weimar Germany did cause hyperinflation by printing Deutschmarks. But there's a really interesting point here:
They printed Marks to buy foreign currency with which to pay off war debt.
So, yeah, if you just run the printing presses on the Mark to buy, say, GBP, then the Mark will indeed lose value vs the Pound.
Critically, this scenario can't happen if all your debt obligations are denominated in your own currency, as in the US. The scenario where the USD experiences hyperinflation because the Fed has to crank out ever more money to pay off Treasury obligations simply cannot happen, but it's a fairy tale used, as best as I can tell, to scare gullible daytime TV viewers into buying American Liberty Coins.