Paul Krugman points to « one of the infuriating misunderstandings
of German economic history », i.e. the idea that hyperinflation was what
brought Hitler to power.
He rightly notes that: “Yes, there was a hyperinflation in 1923, which
may have helped radicalize German politics. But the proximate factor in Hitler’s
rise to power was the great deflation
of the 1930s, brought on by a disastrous attempt to stay on gold.” (The
Conscience of a Liberal, July 8, 2015, “Deflation and You-know-who”).
This is an unpalatable truth for those who defend the euro on the ground
that it protects all of us against the horrors of inflation … at a time when
many European economies are on the verge of … deflation, brought on by the
disastrous attempt on the part of non German members of the Eurozone to stay on
the euro, Greece being actually on an effective deflationary trend!
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