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Now what had happened? Prices went up, yet the monetary quantity of the policy remained the same. He had in fact for many, many decades made savings. For whom? For the government to spend and devastate. If you talk about a catastrophe of the money, you need not always have in mind a total breakdown of the currency system. ” And it occurred in many other countries later, for instance, the most famous inflation, the breakdown of the German mark currency in . ese changes are not the same, nor to the same degree in various countries.

You were right and I was wrong. ” I admitted that without any difficulty. And I would have to admit it today again. In the years after the First World War, American economists frequently visited Vienna and I had the pleasure of talking with them, and explaining inflation and conditions as they prevailed at that time in Austria and in other European countries. And, as you know, when people are talking about economic problems, they are talking and talking until finally it is late in the evening, very late in the evening.

Sometimes an expenditure is just buying bombs and throwing them into a foreign country. But if the expenditure is beneficial, let us say if it makes it possible to improve some things in the country, then the statesman says, “Look, you never had such a wonderful life as you have under my regime. ere are some bad people, some inflationists, some people who are profiteers, but I have nothing to do with them. ” And so on. Our economic situation depends largely on the relation of the government and the ruling political party or parties to the labor unions.

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