Tuesday, August 07, 2007

Great moments in logic, or not.

Someone tried to tell me that the hyperinflation of the Weimar Republic (Germany between WWI and WWII) is a powerful argument for fiat currency and central banking.

(what actually happened; the central bank of Germany ran the printing presses red hot and moved the decimal points producing fiat money so fast you could trade a wheelbarrow full of the stuff for a loaf of bread...not exactly a decent argument for either fiat money or central banking)

2 comments:

Shawn said...

...was it germany where mises took some students to the printing presses at night and said "if you want to stop the inflation, burn down these buildings" (or some such)?

Bike Bubba said...

Austria also had hyperinflation, and Mises lived in Vienna, and took part in fixing it. I'd guess that it happened there, if it did.

Good story either way.