Moreover, while the hyperinflations are seen these days as an uncontrollable phenomenon, this one at least was not only deliberately provoked, it ended rather quickly with the introduction of the rentenmark, which was tied to, of all things, real estate assets. The new stable reichsmark succeeded it within a year. The next four years saw the German economy perform rather well, so long as US capital flows kept flowing. When those flows turned off in 1929, the German government abandoned the countercyclical policies it had pioneered in the 1920s, especially when its unemployment insurance scheme generated a large deficit, and reached for the austerity levers. The Reichsbank raised interest rates to encourage capital inflows, but the flows failed to arrive given the general shortage of liquidity in Europe following the Fed's interest rate hike. The only thing that happened was that the economy tanked further. Official reserves fell precipitously, and so did the gold cover.

Mark Blyth, Austerity, loc. 527