The story of Germany in the years after the First World War is a striking reminder of how price stability and democracy go hand in hand. The historian Gerald Feldman famously called those troubled years “the Great Disorder”.[ 1 ] And although the relative contributions of the hyperinflation of the 1920s and the deflation of the 1930s are still debated, there is little doubt that wild swings in prices eroded the economic foundations of democracy. One of the ways in which price instability does this is by triggering large distributional effects, which often hurt the poorest in society the most. For example, ECB ... (full story)