What is Hyperinflation?Hyperinflation is when the prices of things go up drastically or out of control. When hyperinflation is happening, this means the value of the currency goes down.
What caused it in Germany after WW1?
After the world war one, Germany had to pay respirations to France, USA and UK. Because of this Germany became in debt and couldn’t pay all of the money they had to. Every German citizen was affected by the debt Germany was in.
What were the effects of the hyperinflation?
Germany had a shortage of goods supplies and money. Because of all the money Germany needed, they ended up printing more and more money. This meant that the value of the money went down.
Money was useless in the times of hyperinflation. People had mounds of money and they could hardly buy even a loaf of bread. Children played with blocks of band notes as building blocks because building blocks were worth more in them times than the actual money.
Women burned the money to get there stoves working because coal was too much and some people burned the bank notes to use as fuel for a car. Workers were paid sometimes 2 times a day. People were paid every day, twice a day, once in the morning and once in the afternoon.
By E.S.
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