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The only alternative is to print
more and more banknotes. As government workers and suppliers present their
bills to the Treasury, it pays them off with newly-printed pieces of
paper. This puts more banknotes into the hands of the public and they
then spend them. In Germany, as we have seen, the problem was that there
were trillions of marks worth of paper currency in circulation...
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This puts more banknotes into the hands of the public and they
then spend them. In Germany, as we have seen, the problem was that there
were trillions of marks worth of paper currency in circulation. Prices
could rise one thousand times between a worker being paid and his reaching
the shops. A common analogy used is that if one could afford a bottle of
wine today, one should keep the empty bottle which would be worth more
tomorrow than the full bottle was today...
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