Hyperinflation 1923 - Germany
Hyperinflation
- So much money was printed that it was not worth the paper it was printed on
- Businesses raised their prices to combat the amount of money being printed
- The Government printed more money
- People ended up burning their money because it was worth more as a source of heat than anything else
- A new currency was brought in called the Rentenmark
- Businesses raised their prices to combat the amount of money being printed
- The Government printed more money
- People ended up burning their money because it was worth more as a source of heat than anything else
- A new currency was brought in called the Rentenmark
Summary
Too much money was printed in Germany because the Government wanted to pay off the reparations and had to combat unemployment. The amount of money meant that people began transporting their funds in wheelbarrows and most burned their money for heat.