The forgotten catastrophe ... Deflation

Dear reader,

nowadays most people especially in Germany seem only to remember the hyperinflation of 1923 whereas another catastrophic event had the effect of deepening the crisis years which followed 1929 Wall Street crash. It was the short period of the Government of Chancellor Brüning which ultimately resulted in the even bigger catastrophe for Europe and the world: The takeover of power by a notorious evil politician with a moustache.   


It is heard very often that the Bundesbank and its "bigger brother" the ECB are programmed to prevent a repetition of a historic catastrophe such as inflation but are they still aware of the "forgotten catastrophe" ? Here is some food for thought: 

Heinrich_Brüning (eng) (Wiki)

Heinrich_Brüning (Wiki)

Deflationspolitik (Wiki) 

"Brüning war an allem schuld" (Die Zeit) 

Sparen wir uns zu Tode wie die Weimarer Republik? (Die Welt) 

Paul Krugman on deflation:

Killing the Euro , Boring Cruel Romantics , The ECB’s Reverse FDR ,

Mysterious Europe , The Brüning Thing 

and inflation:

Inflation Conspiracy Theories

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more articles

Europe's Real Problem? Deflation

Can austerity be self-defeating?

Schuldenkrise: „Die Angst vor einer Inflation ist Nonsens“ 

 

and a book:

Heinrich Brüning and the Dissolution of the Weimar Republic