and instances of paramilitary violence organised by the NSDAP. Between 1930 and 1932, Brüning tried to reform the Weimar Republic without a parliamentary majority, governing, when necessary, through the President's emergency decrees. In line with the contemporary economic theory (subsequently termed "leave-it-alone liquidationism"), he enacted a draconian policy of deflation and drastically cutting state expenditure. Among other measures, he completely halted all public grants to the obligatory unemployment insurance introduced in 1927, resulting in workers making higher contributions and fewer benefits for the unemployed. Benefits for the sick, invalid and pensioners were also reduced sharply. Additional difficulties were caused by the different deflationary policies pursued by Brüning and the Reichsbank, Germany's central bank. In mid-1931, the United Kingdom abandoned the gold standard and about 30 countries (the sterling bloc) devalued their currencies, making their goods around 20% cheaper than those produced by Germany. As the Young Plan did not allow a devaluation of the Reichsmark, Brüning triggered a deflationary internal devaluation by forcing the economy to reduce prices, rents, salaries and wages by 20%. Debate continues as to whether this policy was without alternative: some argue that the Allies would not in any circumstances have allowed a devaluation of the Reichsmark, while others point to the Hoover Moratorium as a sign that the Allies understood that the situation had changed fundamentally and further German reparation payments were impossible. Brüning expected that the policy of deflation would temporarily worsen the economic situation before it began to improve, quickly increasing the German economy's competitiveness and then restoring its creditworthiness. His long-term view was that deflation would, in any case, be the best way to help the economy. His primary goal was to remove Germany's reparation payments by convincing the Allies that they could no longer be paid. Anton Erkelenz, chairman of the German Democratic Party and a contemporary critic of Brüning, famously said that the policy of deflation is: In 1933, the American economist Irving Fisher developed the theory of debt deflation. He explained that a deflation causes a decline of profits, asset prices and a still greater decline in the net worth of businesses. Even healthy companies, therefore, may appear over-indebted and facing bankruptcy. The consensus today is that Brüning's policies exacerbated the German economic crisis and the population's growing frustration with democracy, contributing enormously to the increase in support for Hitler's NSDAP. Most German capitalists and landowners originally supported the