Russian Currency Hyperinflation under War Communism

by aholderith

I read a while ago in a book on the Russian Revolution(s) that Lenin purposefully overprinted currency under War Communism in order to eliminate the idea of capitalism, or something of that nature. Is this true or was the rampant inflation purely an accidental consequence of War Communism policies or previous events?

brunovonpuppendorf

I do not think that Lenin purposefully overprinted the rouble in order to eliminate the idea of capitalism. The rampant inflation that plagued the Soviet Union in the early 1920's was the result of monetary chaos in the wake of both economic devastation and the civil war.

Mismanagement and rapid nationalization of industry were taking a toll on the Soviet economy. Public industries that were once running smoothly were taken over by government officials and the production of goods was interrupted. Nationalization was seen as very important in the policies of War Communism as the Bolsheviks sought to create an ownerless and classless society. Thus, the inflation that was caused could be blamed on the policies of War Communism.

However, the civil war that was raging on also played a fundamental role. Since almost every factory was ordered to produce military goods, raw materials came in short supply and the amount of consumer goods became almost nonexistent. Peasants stopped selling what they had for money because they could buy nothing with it. Bartering and rationing became commonplace. The disuse of currency also allowed the Soviet economy to deteriorate.

For more info, http://en.wikipedia.org/wiki/Hyperinflation_in_early_Soviet_Russia