Thursday, March 3, 2011


From Must Full Employment Cost Money? by Ulrich von Beckerath (Berlin), originally published in 1935.

The effect of inflation on the supply of means of payment could be frequently witnessed in Berlin during the monetary crisis of 1923. The bank messengers, sometimes several hundred of them, queued up over night at the Reichsbank. Many of them brought stools with them. Towards noon they received then a small parcel of notes sufficient to last for a day. During all periods of inflation, similar observations were made.

In any case, it will be difficult to rouse in German workers enthusiasm for a new inflation, and one of the many causes why the present German Government has numerous supporters among the workers is that under it their is no fear of an inflation.

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