Question

What is hyperinflation ? What were the factors that led to hyperinflation in Germany ?​

Answer 1

QUESTION ⤵️

What is hyperinflation ? What were the factors that led to hyperinflation in Germany ?

ANSWER ⤵️

Hyperinflationary, in easy words we can say rise in the money supply.

Signs::-

• production will be less
• You are not able to purchase easily,means the power will falls.

GERMANY::-

Its the best known example of hyperinflation.

As in Germany,The world war I is going on and the kingdom is facing so much of economic shocks.Then the treaty of Versailles helped them out in return of money to be transferred in BANK OF INTERNATIONAL SETTLEMENTS.

But the payment is impossible for Germany and that country failed to make the payments.

Then they printed more currency to give,and that's why hyperinflation took place and quickly took the hold.

GERMANY reached rates more than 30000%permonth, and it becomes double after every two days.

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