Ambrose Evans-Pritchard was right to say that Adam Fergusson’s When Money Dies throws little light on events today. Comparisons between the present era and the Weimar Republic in the early 1920s are inappropriate. There is plenty of evidence that Germany’s Great Inflation in the early 1920s was an internal initiative to eliminate Germany’s huge internal debts from the war, after which she adopted a new debt free currency.
Today, in contrast, Germany is adopting a deflationary economic policy. It affects all the countries within her orbit including the UK. Had Gordon Brown taken note when Germany first raised VAT in January 2007 and gave the benefits to industry, our national finances would be in better shape.