Tanz auf dem Vulkan? Die Stadt und die Herausforderungen der "Großen Inflation"

Abstract

Cities are considered to be winners of the “Great Inflation”. Especially in the course of hyperinflation, pre-war and immediate post-war they could repay their debts with devalued money. Despite criticism from the President of the Reichsbank, Hjalmar Schacht, cities placed bonds again immediately after the currency reform. As a result, some cities were to experience liquidity crises during the Great Depression. However, municipal debt was not the result of urban megalomania. On the contrary, the article shows that the scope of municipal services increased dramatically under post-war conditions. Simultaneously, the inflation and its interaction with the financial reform led to a drastic decline in municipal revenues. Therefore, important investments had to be postponed. The sources do not give the impression of a careless waste of money, but rather of cities unable to fulfil their responsibilities during the inflationary period without substantial borrowing.