Studienarbeit aus dem Jahr 2010 im Fachbereich Geschichte Europas — Zeitalter Weltkriege, Note: 1, Leopold-Franzens-Universität Innsbruck (Geschichte ), Veranstaltung: Österreichische Geschichte, Sprache: Deutsch, Abstract: This paper studies the various ways a country has in order to finance a war, thereby focusing on the Austrian-Hungarian monarchy and its ways to get money to finance the First World War. Major insights were provided by Alexander Popovics, the former governor of the Austrian-Hungarian bank and president of the Hungarian national bank. As his book Das Geldwesen im Kriege (trans. The Monetary System during the War) shows, Austria-Hungary relied very much on the money printing press instead of imposing taxes. Other means of raising money were emitting war bonds and loans from other countries – mostly Germany. However, as the monarchy relied to a much greater extent on the printing press than other nations did, the result was a major inflation that started already in 1914.
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