chapter  5
Deficit finance, expectations and real money balances
The operation of the inflation tax in Germany after the First World War
Pages 20

In actual fact the Reich is, through the currency depreciation, much more lightly burdened with debt than formerly. On March 31, 1914, the total funded and floating debt of the Reich amounted to 4,918 million gold marks;…reckoning in gold marks at a dollar rate of 3,000, the debt of the Reich on October 10, 1922, amounted to 875,842,000 marks, or something over one-sixth of the prewar debt. It must, of course, be borne in mind that the capital of everyone in Germany, and therewith the ability to take up a new loan, has correspondingly fallen as the currency has depreciated.