When Money Dies (Adam Fergusson)

Trader's Library #90 · Money, macro and economics. A frightening and instructive history of hyperinflation in Germany.

Author: Adam Fergusson · Original: When Money Dies · Year: 1975 · Usefulness for traders: ★★★★☆

What it's about

The history of hyperinflation in the Weimar Republic in 1921–1923, told through diaries, letters and reports of the time.

What it gives a trader

The book shows what happens when money loses its value: prices rise by the hour, savings vanish and people flee into real assets. For a trader it's a lesson that the currency you count your results in is also a risky asset.

Lessons for traders

• inflation destroys those who hold cash and bonds
• trust in money disappears slowly, then suddenly
• monetary policy can change all prices at once

What to watch out for

More a history book than an economics one. Analogies to the present should be drawn with care.

Discussion

The discussion takes place in Hetman Capital Club (in Polish). Join the discussion in the Club →

Navigation

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Educational content, not investment advice. The book description is my own summary and assessment, not quotations. Edition details were checked in catalogues and bookshops, and where there was doubt I said so plainly.