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In 1923 a loaf cost billions. More in the afternoon than the morning.

In November 1923 one US dollar cost 4.2 trillion marks. Wages were paid daily because money lost value by evening. The cause was financing government spending by printing notes. The nightmare ended with the Rentenmark, a new currency with a strictly limited supply.

Useful: This experience explains why Germany insists so strongly on an independent central bank.

Source: de.wikipedia.org

DeutschlandGeschichteInflation

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Question on this card

What ended Germany's 1923 hyperinflation?

  1. A US loan
  2. The introduction of the Rentenmark
  3. The gold standard
  4. A price freeze
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Correct: The introduction of the Rentenmark

The Rentenmark came with a strict supply limit and restored trust.

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