• Franconian_Nomad@feddit.org
    link
    fedilink
    English
    arrow-up
    11
    arrow-down
    6
    ·
    26 days ago

    Hyperinflation of the Weimarer Republik says „Guten Tag!“

    Seriously, just printing money has the potential to go catastrophically wrong.

    • geissi@feddit.org
      link
      fedilink
      English
      arrow-up
      14
      arrow-down
      1
      ·
      26 days ago

      Hyperinflation is typically caused when you’re printing money to buy foreign currency as a means of servicing foreign debt as was the case in Weimar era Germany.
      The increased supply lowers exchange rates, which in turn means you need to print more money.

      As long as you have free economic capacity domestically, spending money for it to be used won’t cause hyperinflation.