Paper and Iron

This analysis explores the German hyperinflation of the early 1920s, arguing that political flaws hindered the adoption of stabilizing policies, ultimately leading to economic disaster and paving the way for the Third Reich.

In Paper and Iron, Niall Ferguson provides a thorough examination of the German hyperinflation of the early 1920s, presenting a compelling argument that stabilizing economic policies could have been implemented as early as 1920. He contends that the failure to adopt such measures was largely due to deep-rooted deficiencies in Germany's political institutions, which had existed since the 1890s. This analysis not only sheds light on the economic turmoil of the Weimar Republic but also links these issues to the rise of the Third Reich.

Ferguson challenges the widely accepted belief that inflationary policies were beneficial for post-World War I Germany, which many historians argue helped stimulate growth and ease reparations. Instead, he posits that the hyperinflation experienced in 1923 was a significant economic and political catastrophe. By exploring alternative policies that could have stabilized the German currency, Ferguson highlights the missed opportunities that could have altered the course of German history.

Ultimately, Paper and Iron invites readers to reconsider the prevailing narrative surrounding Weimar Germany's economic strategies. By tracing the origins of its political failures back to the Wilhelmine era, Ferguson provides a nuanced understanding of how these historical factors contributed to the eventual collapse of the Weimar Republic and the emergence of authoritarianism. This book is a thought-provoking contribution to the discourse on economic policy and political stability, encouraging a reevaluation of the choices made during a critical period in German history.