How was it possible to use stable money in a relatively short period of time, leading to unforgettable suffering and disrupting the functioning of society? One hundred years ago, in November 1923, hyperinflation reached its peak in Germany, followed in the same month by the launch of a new currency, the Rentenmarga. At its peak, annual inflation in Germany reached 182,000,000,000%. At the end of 1923 prices were 1.26 trillion times higher than in 1913.
But to try to understand what happened we must first go back to the time before the First World War. The currency was stable and the gold standard was in place. Among the Germans there was even a saying: it doesn’t matter whether it is a sheet of paper or a gold stamp, they are both the same. Prices were relatively stable. There was trust in the institutions, money, valid contracts. But Germany abandoned the gold standard at the start of World War I.
2023-12-24 14:09:55
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