ABSTRACT
The inflation worked directly on property rights and only indirectly on the forms of wealth to which they were the key. In response to the inflation the courts developed the concept of revaluation, which was designed to produce an equitable adjustment of the losses and gains of the inflation. Inflation consists in the expansion of the note supply relative to the supply of goods and services available for purchase. The setting up of the Weimar Republic was thus undertaken in a period of inflation. The success of the means employed to end the inflation supports the monetarist theory of its causes: that it resulted from excessive government spending via budget deficits. The basic notion of revaluation was gloriously simple: to redistribute wealth from contractual parties who had gained through the inflation to those who had lost. The effect of the revaluation policy was to prolong artificially and augment the consequences of the inflation.
