How did Schacht’s MEFO Bills work? Were they inflationary or not?

In 1934, Reichsbank President Hjalmar Schacht introduced the MEFO bills scheme to fund the German government’s rearmament programme. There are various interpretations regarding this scheme, and there hasn’t been a decent explanation of how they worked. Some say they were inflationary, while others claim they were not. This video aims to clarify what the scheme was about, how it worked and whether the MEFO bills could be classed as inflationary or not. The link to the free PDF of Murray Rothbar’s “America’s Great Depression“ NOTE: Technically the cause of a recession or depression is the expansion of the currency supply AND the manipulation of interest rates. But I just said inflation caused it to keep things simple, since the inflation policy impacts interest rates. See my “What Causes a Recession or Depression?“ video for more details 🔔 Subscribe for more History content: ⏲️ Videos EVERY Monday at 5pm GMT (depending on season, check for British Summer Time). The thumbnail for this video was created by Terri Young. Check out her website - - - - - 📚 BIBLIOGRAPHY / SOURCES 📚 This video’s source list Full list of all my sources - - - - - ⭐ SUPPORT TIK ⭐ This video isn’t sponsored. My income comes purely from my Patreons and SubscribeStars, and from YouTube ad revenue. So, if you’d like to support this channel and make these videos possible, please consider becoming a Patreon or SubscribeStar. All supporters who pledge $1 or more will have their names listed in the videos. For $5 or more you can ask questions which I will answer in future Q&A videos (note: I’m behind with the Q&A’s right now, and have a lot of research to do to catch up, so there will be a delay in answering questions). There are higher tiers too with additional perks, so check out the links below for more details. Thank you to my current supporters! You’re AWESOME! - - - - - 📽️ RELATED VIDEO LINKS 📽️ What Causes a Recession or Depression? Public vs Private | The Historic Definitions of Socialism & Capitalism Why was Schacht hired then fired? The Paradox of Germany’s WW2 COAL Problem BATTLESTORM STALINGRAD S1/E1 - The 6th Army Strikes! History Theory 101 - - - - - ABOUT TIK 📝 History isn’t as boring as some people think, and my goal is to get people talking about it. I also want to dispel the myths and distortions that ruin our perception of the past by asking a simple question - “But is this really the case?”. I have a 2:1 Degree in History and a passion for early 20th Century conflicts (mainly WW2). I’m therefore approaching this like I would an academic essay. Lots of sources, quotes, references and so on. Only the truth will do. This video is discussing events or concepts that are academic, educational and historical in nature. This video is for informational purposes and was created so we may better understand the past and learn from the mistakes others have made.