Scribd Logo
Upload

Welcome to Scribd!

  • Hyperinflation Inflation in Germany

    Uploaded by

    Priyanka Patel
    5 views12 pages
    The document discusses hyperinflation that occurred in Germany in the 1920s. It defines hyperinflation as inflation exceeding 50% per month. During this period in Germany, wages dropped significantly as workers were paid multiple times per day. The hyperinflation was caused by the government issuing excessive amounts of new money, causing prices to rise rapidly. This led to negative economic effects like unemployment increasing and the economy ultimately collapsing by the end of the hyperinflation period.

    Original Description:

    Original Title

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document discusses hyperinflation that occurred in Germany in the 1920s. It defines hyperinflation as inflation exceeding 50% per month. During this period in Germany, wages dropped significantly as workers were paid multiple times per day. The hyperinflation was caused by the government issuing excessive amounts of new money, causing prices to rise rapidly. This led to negative economic effects like unemployment increasing and the economy ultimately collapsing by the end of the hyperinflation period.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    5 views12 pages

    Hyperinflation Inflation in Germany

    Uploaded by

    Priyanka Patel
    The document discusses hyperinflation that occurred in Germany in the 1920s. It defines hyperinflation as inflation exceeding 50% per month. During this period in Germany, wages dropped significantly as workers were paid multiple times per day. The hyperinflation was caused by the government issuing excessive amounts of new money, causing prices to rise rapidly. This led to negative economic effects like unemployment increasing and the economy ultimately collapsing by the end of the hyperinflation period.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 12

    Hyperinflation inflation in Germany

    by : priyanka Patel pankaj section - c roll no. - 42 roll no. - 41

    Inflation
    Inflation is the continuous and persistent rise in general price level.

    Types of inflation
    Galloping inflation Hyper inflation Deficit induced inflation War time inflation Partial inflation Open and oppressed inflation Internationally generated inflation

    Introduction
    What is hyper inflation? A hyper inflation is a period when the price level simply explodes. Hyperinflation is often defined as inflation that exceeds 50% per month.

    Hyperinflation
    There was no unemployment and business was operating with high speed. Wages of workers dropped badly. Workers were paid 3 times a day.

    Money and prices during hyperinflation

    Figures shows the hyperinflation that occurred during the 1920 in Germany. The data on hyperinflation show a clear link between quantity of money and the price level. The slope of the money line represents the rate at which quantity of money was growing, and the slope of price line represents the inflation rate. The steeper the lines, the higher the rate of money growth of inflation.

    Causes of hyperinflation
    The inflation was caused by the government issuing a flood of new money, causing prices to rise. The war the destruction of resources is just one of the small reasons. Extremely rapid rate in supply of paper money Some business leaders accepted the inflation happily as it helped them wash off their debts and prosper the business.

    Steady decrease in the value of money being circulated

    Effects of hyperinflation on business


    Businessmen bought new machinery, built factories, borrowed money heavily. Good speculators of stocks and currency were successful. Farmers got rid of money and purchased lot of equipments (most of them were a waste at the end). Shipping and Mining industry expanded beyond market needs. Depression in consumer goods industry textile, meat, beer, sugar and tobacco.

    Effects of hyperinflation on business


    Towards the end of hyperinflation: Unemployment began to soar Retailers could not get or sell goods at profit Farmers stopped selling their produce Reallocation of wealth Economy collapsed

    You might also like