Causes and Scale of German Hyperinflation
Hyperinflation occurs when governments print too much money without having enough gold to back it up. Weimar Germany faced this exact problem after World War I - they desperately needed cash but lacked the gold reserves to support their currency.
The German mark's value plummeted whilst prices skyrocketed at terrifying speed. Germany's war debts reached a staggering 175% of their total national output, making the situation even worse. The numbers are almost unbelievable - a loaf of bread that cost 0.6 marks in 1918 cost 201 billion marks by November 1923.
People literally carried money in wheelbarrows because prices changed every hour. Many Germans abandoned money altogether, returning to a barter system where they traded goods directly instead of using worthless currency.
Quick Fact: Prices during hyperinflation rose so fast that restaurant menus had to be reprinted twice a day!
