• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

13th November 1923 Daily Mail Hyperinflation shock in Germany

Extracts from this document...


13th November 1923 Daily Mail Hyperinflation shock in Germany The shock of hyperinflation in Germany at the moment is shocking to the people of Germany. The cause of hyperinflation is simple; Inflation is a general rise in the price level. It is also a cost to the economy because of the uncertainty it creates. In Germany the cause of it was Germany had no money so they printed more money, to replace the money they did not have, this caused prices to go up and money became worthless. ...read more.


But because she has no income and only a pension every month she is losing out. Her saving has become worthless. A middle class shopkeeper from Berlin has savings and a small business, but because of hyperinflation, his business is going bankrupt, and his savings are worthless. He is using his banknotes for fire and heat during this cold winter. A rich businessman from Hamburg is benefiting from the crisis, he is able to buy smaller, bankrupting companies. ...read more.


Workers and other employed people are protected to some extent, they have a steady income and they still have money coming in. but in this world of hyper-inflation, no one is really safe In 1913 in Germany am egg would have cost you, 0.08 Marks, and this summer an egg would have cost you 5,000 Marks Today an egg will cost 80,000,000,000 Marks. The real losers here are the average middle class people. The poor had nothing to lose anyway and the rich have their businesses and land to fall back on. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Macroeconomics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Macroeconomics essays

  1. Unemployment Issues in Germany

    Since it relies heavily on international trade, Germany's major imports are the same as it exports. As of Germany's agriculture, for many years now it has been in a state of decline. This is mainly due by the poor earnings and the lack of profitability which in return lead a big number of small and medium farms to failure.

  2. How Were the Lives of Germans Affected by the Hyper-Inflation of 1923?

    New billions of marks were printed to finance these heavy costs and by late 1923, 300 paper mills and 150 printing companies had 2000 presses going day and night, top speed, turning out currency. As usual under such dire cicumstances, a black market flourished, made up mostly of those who

  1. What ended hyperinflation in Germany, Austria and Hungary in the 1920s? Do the facts ...

    The Rentenbank made clear its intent to meet its obligation to limit government borrowing in the test by the government in December 1923. At the same time, the government stopped additional borrowing from the central bank. Simultaneously, in order to balance the budget, the government took a series of deliberate actions to raise taxes and cut expenditures.

  2. Inflation in Germany

    However poverty was not non-existent as suggested by the source. It states that Germany will not pay reparations regardless of its wealth and thriving economy. The source portrays the Germans as actors and that their economic situation is fine and that they are just acting so they do not have to pay the bill.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work