Hyperinflation

• Causes of hyperinflation

  • The sudden flood of paper money into an economy weakened by war, combined with the general strike
  • Great Depression
• Proof that hyperinflation rose so dramatically

  Loaf of bread

  Jan 1923 = 1 marks

  Nov 1923 = 200,000 billion marks
• Who benefited from hyperinflation?

  • People with debt
  • Farmers as people payed more for food
• Who were victims of hyperinflation?

  • People with savings lost all their money
  • Small business owners went bankrupt
  • Elderly with fixed pensions couldn't get more money
  • People with fixed income > no negotiation