So, bloke writes a book about the Weimar inflation. Gets something quite right:
Germany’s inflationary experience took a characteristic course. Price rises led to strikes and wage demands from the huge public sector. As the purchasing power of the mark plummeted, people would rid themselves of money as fast as possible, seeking safer goods or currencies for survival. Mounting velocity of circulation effectively increased the money in use, stoking the fires of inflation ever higher.
Yep, the V in MV=PQ rose.
Blizzards of broken paper promises are history. Only a short time ago Ben Bernanke of the US Fed was able to order trillions of dollars of new money at the touch of a button. Extraordinarily, although Havenstein regularly sent the mark/dollar rate to new unplumbed depths, latter-day QE, though hardly less alarming, has so far failed seriously to breach those dams of public trust in money that keep inflation at bay.
Has the nature of money changed?
Errm, no. We’re trying to compensate for the fact that the V in MV=PQ has fallen.