How did inflation affect Germany after ww1?

Germany was already suffering from high levels of inflation due to the effects of the war and the increasing government debt. In order to pay the striking workers the government simply printed more money. This flood of money led to hyperinflation as the more money was printed, the more prices rose.

What happened to German currency after ww1?

After World War I the mark collapsed as Germany suffered from hyperinflation. To stem currency instability and to stabilize the economy, the gold mark was replaced by the Rentenmark in 1924, at which time a U.S. dollar was worth 4.2 billion marks.

What countries experienced inflation after ww1?


  • Perhaps the best-known example of hyperinflation, though not the worst case, is that of Weimar Germany.
  • Prohibited from making payments in their own currency, the Germans had no choice but to trade it for an acceptable “hard currency” at unfavorable rates.

Why was there inflation after ww1?

When the war ended, government agencies removed their controls on the economy. This released pent up demand. People raced to buy goods that had been rationed, while businesses rapidly raised prices they had been forced to keep low during the war. The result was rapid inflation.

Which country has never experienced hyperinflation?

The answer is A: Norway. Among the countries recorded in the statement, (a) Norway is the one that has never experienced hyperinflation.

Which country has the worst hyperinflation?

The Post-World War II hyperinflation of Hungary held the record for the most extreme monthly inflation rate ever – 41.9 quadrillion percent (4.19 × 1016%; 41,900,000,000,000,000%) for July 1946, amounting to prices doubling every 15.3 hours.

What caused hyperinflation in Germany?

The main cause of the Weimar Republic hyperinflation is believed to be because of the “London ultimatum” in May 1921 which demanded reparations in gold or foreign currency to be paid in annual installments of 2,000,000,000 (2 billion) gold marks plus 26 percent of the value of Germany’s exports.

What caused inflation after WW1?

The inflation was triggered by a huge increase in the nation’s money supply, caused in part by the heavy demands of the reparations placed upon Germany following its loss in World War I. Soon an inflationary mentality set in. Merchants would raise prices automatically. People would hoard goods, figuring the price would go up,…

What happened to Germany after the Cold War?

Following the end of the Cold War, East Germany, including East Berlin, and West Berlin used the same West German constitutional clause and declared their accession to the Federal Republic of Germany effective 3 October 1990 – an event referred to as German reunification.