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How long would hyperinflatin last
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pilgrim
Posted 10/25/2012 08:32 (#2659886)
Subject: How long would hyperinflatin last



Pocahontas, IA

Trying to refresh my mind as to how long the hyperinflation lasted in the Weimar Republic and it looks to have beeen about 1 year before a new currancy took over.

                                                                        Wikipedia report on Weimar Republic and hyper inflation

"Beginning in August 1921, Germany began to buy foreign currency with Marks at any price, but that only increased the speed of breakdown in the value of the Mark.[19] The lower the mark sank in international markets, the greater the amount of marks were required to buy the foreign currency demanded by the Reparations Commission.[16]

During the first half of 1922, the Mark stabilized at about 320 Marks per Dollar. This was accompanied by international reparations conferences, including one in June 1922 organized by U.S. investment banker J. P. Morgan, Jr.[20] When these meetings produced no workable solution, the inflation changed to hyperinflation and the Mark fell to 8000 Marks per Dollar by December 1922. The cost of living index was 41 in June 1922 and 685 in December, an increase of more than 15 times.

In January 1923 French and Belgian troops occupied the Ruhr, the industrial region of Germany in the Ruhr valley to ensure that the reparations were paid in goods, such as coal from the Ruhr and other industrial zones of Germany. Because the Mark was practically worthless, it became impossible for Germany to buy foreign exchange or gold using paper Marks. Instead, reparations were paid in goods. Inflation was exacerbated when workers in the Ruhr went on a general strike, and the German government printed more money in order to continue paying them for "passively resisting."[21]"

So in todays fast paced and wired world, how long would hyperinflation last---a couple of months at most?   

 



Edited by pilgrim 10/25/2012 08:33
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