Philipp Heimberger (@heimbergecon): HYPERINFLATION directly led to the Nazi's rise, a common view in🇩🇪. Fresh empirical evidence suggests it's wrong: "inflation data for over 500 cities show that areas more affected by inflation didn't see a higher vote share for Nazi party" over 1924-1933: https://www2.unavarra.es/gesadj/CyD5/depEconomia/documentos-trabajo/2021/WP2101.pdf https://twitter.com/heimbergecon/status/1435155432725749760/photo/1
In 1928, the Nazis had 2.6% of the votes; in 1932: 37.4% (in between: the Great Depression). Only 1 in 25 Germans today knows: Nazi rise happened with mass unemployment and DEFLATION. ~50% mix recession/deflation with the hyperinflation ten years earlier.
https://www.hertie-school.org/fileadmin/user_upload/20191101_Inflation_Redeker_neues_Layout.pdf https://twitter.com/heimbergecon/status/1435503187214094337/photo/1
Fiscal austerity helped bring the Nazis to power. This recent paper in the Journal of Economic History provides evidence by directly linking German regional voting outcomes from four elections (1930-1933) to fiscal austerity:
https://www.cambridge.org/core/journals/journal-of-economic-history/article/austerity-and-the-rise-of-the-nazi-party/7FB1BC0E727F47DC790A23D2A4B70961 https://twitter.com/heimbergecon/status/1435503284694003714/photo/1
It matters: references to hyperinflation in the Weimar Republic come up regularly in the German debate. Prominent economists have evoked the rise of the Nazis (in connection with hyperinflation) to make the case for higher interest rates/fiscal austerity:
https://braveneweurope.com/philipp-heimberger-hyperinflation-and-the-rise-of-the-nazis-distortions-of-history-by-hans-werner-sinn https://twitter.com/heimbergecon/status/1435505694279704577/photo/1