The article discusses the history of German monetary policy in the first half of the 20th century, focusing on the evolution of the modern central bank. It highlights three key periods: hyperinflation in the 1920s, deflation in the early 1930s, and the currency reform of 1948. The main finding is that economic instability during inflation and deflation eroded public support for free enterprise, but stability in the post-1948 period restored confidence in the market system.