The Economic Consequences of the Weimar Hyperinflation

Source: EconLog
by John Phelan

“The Weimar Republic faced existential political threats from left and right and bought social peace with printed money. Initially, this helped Germany avoid the high postwar unemployment seen in Britain, for example, whose government implemented austerity measures and tamed inflation. As the mark tumbled against other currencies, German exports boomed. While, in 1921, industrial production fell by 31% in Britain, 22% in the United States, and 12% in France, in Germany it grew by 45%. But whatever the average German gained from lower unemployment they paid for in higher prices.” (11/14/23)