Hyperinflation
##Definition : It is a period increase in the money supply . Usually due to unrestrained printing of fiat currency . Decreasing the value of the currency
##Example : One of the famous examples
of hyperinflation occurred in Germany between January 1922 to November 1923 .
The average price level increased by a factor of 20 billion , doubling every 28
hours .
Pictures Of References :
This
shows that the prices of three eggs cost 100 Billion which is very expensive
and not affordable
This
shows that the price of the bread has been increasing from January to November
.
This
shows that the amount of money they have were worthless and the children use it
to play and build kites .
Videos Of References :
Post-War
Germany struggled with poverty , high unemployment and a fragile economy . The
reparation payments were therefore an unwelcome burden , highly unpopular with
the German people . the government kept up with the reparation payments by
printing more money .
The
Germans adopted a policy of non-cooperation . Workers went on strike so that
there would be nothing for the French to take . The government responded to the
crisis by printing more money to pay striking Ruhr workers and to pay off some
of its debt .
Prices
spiralled out of control and hyperinflation resulted .
Pensioners
could not even afford a cup of coffee with their monthly pension .
Hyperinflation
caused the Weimar Government to lose the support of the middle and lower middle
classes . The problem was finally resolved when Chancellor Gustav Stresemann
replaced the currency with the new Rentenmark .
~ Therefore favourable circumstances is what led to Hitler's rise because with the hyperinflation situation, Hitler was able to convince people that he could make a good and positive difference to Germany and that he is trustworthy. And with that thought, people would believe that he is a good ruler.
Short and simple. Allows me to understand on hyperinflation easily.
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