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Later the German "economic miracle" that took root just after 1948 reflected, in part, a currency reform instituted by the occupation authorities that replaced depreciating money with money of stable value.
One of the most severe problems confronting the new regime was providing bread and other foodstuffs to the cities and the newly formed Red Army, because the peasants were unwilling to sell their produce for rapidly depreciating money ("coloured paper") for which there was nothing to buy.
In a Germany-style hyperinflation, volatility goes berserk as everyone gets rid of rapidly depreciating money, as if it were a hot potato or a bag of toxic spinach.
Similar(54)
During the 18th century it was debased, and, after the middle of the 19th century, the rapidly depreciating paper money predominated in Russia's circulation.
While eating up huge amounts of financial assistance from the world's developed nations, these parasites produce nothing but corruption, drugs, persistently depreciating paper money and illegal immigrants.
That was important because conservative Northern Democrats, many of whom had sympathized with the Confederacy, were in a position to obstruct or deny repayment on the full value of the public debt by paying creditors in depreciated paper money, or "greenbacks".
It is wrong where (as in the U.S. or Europe today) paper money is depreciating year by year.
There is fatalism in throwing money at depreciating assets, but also beauty.
Inevitably the retrenchment evident in the 1930s became still more severe, and, while prices for primary products soared, the value of money depreciated proportionately.
That's when Asian economies, starting with Thailand, saw their currencies depreciate when "hot money" left their borders, and it ended up with several countries being rescued by the International Monetary Fund.
Deficit countries were supposed to adjust by following the "rules of the game", raising interest rates and reducing the money supply, thus lowering price levels, depreciating real exchange rates, and improving trade balances.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com