Cite JOURNAL ARTICLE
Ein Vorschlag zur Inflationsbekämpfung
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 95 (1975), Iss. 1 : pp. 33–58
The present money is characterized by two facts: on the one hand the formal money, its impression of value, and its partition are constant, on the other hand the purchasing power of money is variable (diminishing). This distribution of constancy and variableness is caused only by tradition. If both, the formal money and its purchasing power, cannot be kept constant, at the same time, it seems to be more rational to keep purchasing power constant and to vary formal money. This should be effected by periodical currency reforms in such a manner that, e. g. every third year, the old money will be replaced by a new one with a higher purchasing power. The conversion key required should be based on the growth rate of the price level. Thus an approximative index money would result effecting a higher transparency and, therefore, presumably a reduction of the inflation rate.