by Addison Wiggin, Daily Reckoning.com:
Austria, 1920-21: The government printed money to cover its debts from World War I.
Food and fuel costs exploded. Banks urged their customers to convert Austrian kronen into a more stable currency… even though it was against the law.
A law-abiding widow is wiped out on the day of a bank run. Her diary entry is reproduced in Adam Fergusson’s book When Money Dies…
“Why don’t you think the krone will recover again?” [I asked my banker.]
“Recover!” [he] said with a laugh… “just test the promise made on this 20 kronen note and try to get, say, 20 silver kronen in exchange.”
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