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Monetary autonomy

Germany, Britain and the Euro - and the need for monetary autonomy

The Germany that engaged in the successful 1973 float of the DM, now seems to be missing the main point of that decision. That monetary autonomy is valuable.
Also odd is German backing of currency areas across very differing economies, in tandem with federal fiscal rules absent a federal government.

Inflation and threats to currencies loom large in German history and so German activism on such matters is no surprise. But what is a surprise is the evident failure to get the core issue of monetary autonomy right.

The rise of Hitler was a cataclysmic response to hyperinflation that destroyed German savings of the 1920s. German Marks traded at 67 billion to the US dollar in 1923. Notes were carried in increasing numbers of wheelbarrows, as people desperately sought scapegoats and new leadership.

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