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by Wolfenstein98k
1582 days ago
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States should. A lot of their power rests on their legitimacy. They can collapse fast once that erodes. If they cannot even keep the centre of the capital moving, seemingly ever again, the value of the currency can plummet quite quickly as people decide to move wealth into less liquid assets (or simply cash from other countries). This seems far-fetched, but it did in the Weimar Republic too, until it became apparent it was already happening. Edit: just to be clear I'm not saying Weiner hyperinflation resulted from a collapse in the legitimacy of the state, but moreso that collapse itself is never obvious until it's well underway. |
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