The aim of this article is to show Hjalmar Schacht's (1877-1970) economical ideas, as well as to explain his practical measures regarding the resolution of the main problems faced by Germany in the first half of XX century. It was concluded that Schacht had an important role in the extinction of German hyperinflation in the1920's decade, in the negotiations of the war reparations (Dawes and Young's plans), in overcoming the great depression of the1930s (putting an end to the unemployment and making Germany an economical potency once again) and, finally, formulating a new plan to overcome the economical crisis experienced by his country after the end of World War II. Two monetary illusions were used: Rentenmark's one that helped to finish with the inflation, and Saques Mefo's one that financed the public works which would extinguish the unemployment. Due to his achievements, he was considered as a 'wizard' by many people. Actually, Hjalmar Schacht just knew the operational working of things, and the existing relationships among the economical variables as well.
Schacht; Inflation; Unemployment; Coin; Germany
