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by clock_tower
3429 days ago
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On avoiding hyperinflation, it's certainly true that we know how to do it. For the infamous Weimar hyperinflation, I'd refer you to Adam Fergusson's When Money Dies; what drove the hyperinflation was two things, that the government was unwilling to control its spending (it risked France annexing the Saarland), and that the head of the national bank was poorly educated. When Schacht was brought in, in 1923 (10 years before Hitler; Schacht has a reputation as Hitler's banker, but had never heard of Hitler in '23), he was able to stabilize things pretty quickly: Britain had intervened to rule out a French annexation of the Saarland, and Schacht was more with-it on monetary theory than his predecessor had been. The risk of Wiemar-like circumstances striking again in the West are basically zero, unless a Wiemar-like perfect storm of defeat and ignorance strikes again; and even then, hyperinflation never lasts long (no one can live under it for long). One woman weathered the Wiemar hyperinflation by selling one link of a gold Rosary chain a day to buy food; a quite modest amount of precious metal is enough to outlast this sort of disaster. |
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How about Venezuela then ?