Germany experienced the Great Inflation of the 1920s, using the papiermark before a major currency reform. The episode occurred during the Weimar Republic after World War I.
Germany faced war debts, reparations obligations, economic disruption, and political instability. The government increasingly relied on money creation to meet financial demands, while the occupation of the Ruhr in 1923 worsened production and fiscal pressures.
The papiermark rapidly lost value, and prices rose at extraordinary speed. People used banknotes for everyday purchases, and the famous images of wheelbarrows full of money reflect the currency’s collapsing purchasing power.
In November 1923, Germany introduced the Rentenmark, which helped stabilize the monetary system. The Rentenmark was later followed by the Reichsmark in 1924. A common mix-up is confusing Germany’s 1923 hyperinflation with Hungary’s 1946 episode, which recorded an even higher rate.