CHART OF THE DAY: Printing Money Like Crazy Sometimes Leads To Burning Witches At The Stake

button more charts
button chart prev
button chart next

An interesting observation from SocGen’s Dylan Grice, who in his latest note discusses how currency debasement leads to social debasement:

A similar dynamic seems evident during Europe’s medieval inflations, only now, the confused and vain effort to make sense of the enveloping turmoil saw the blame focus on suspected witches. The following chart shows the UK price index over the period with the incidence of witchcraft trials. Note the peak in trials coinciding with the peak of the price revolution.

chart of the day, correlation between inflation and witch trails, oct 2012

Photo: Société Générale

Grice goes on to write that the French Revolution, Weimar Germany, and the fall of the Roman Empire all displayed a similar correlation to that above – as governments lost control of inflation, the people began to turn on each other.

Dylan Grice says he’s more worried now than he’s ever been before. Check out the rest of his latest note here >

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.