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Business Under German Inflation

Paper money inflation and credit expansion never fall upon a people like an act of God. They are always the outcome of a deliberate policy. The governments and the parties in power take recourse to inflation because they consider it as a blessing or at least a minor evil when compared with the effects either of cutting down public expenditure or of choosing other methods of financing. This applies to both peace and to war. Inflation as such does not contribute anything to winning battles. It does not produce arms and other equipment. It is merely one of the methods available for financing the huge expenditure caused by war. The other methods are taxation and borrowing from the public (and ...

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