Would artificially inflating an opponent’s economy in war (mass producing/distributing counterfeit currency) be helpful for the war cause? Seems like it would result in economic ruin

Question

Would artificially inflating an opponent’s economy in war (mass producing/distributing counterfeit currency) be helpful for the war cause? Seems like it would result in economic ruin

In: 1

Answer 1

Keep in mind that wartime is already a period of great inflation, particularly a totalizing war that dominates a lot of the economic output. The government you would be attacking likely already has anti-inflationary and stabilizing measures in the economy (ie, rationing, price controls, etc) just for the effects their own wartime efforts will have.

However much you as an enemy nation could print and successfully distribute likely pales in comparison to the money that country is probably printing for themselves to sustain the war effort.

Having an illicit printing press is more useful for purposes of funding your own espionage activities within the opposing country than it is to destabilize its economy.