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Topics: World War I, World War II, Treaty of Versailles Pages: 3 (417 words) Published: August 31, 2014

Economics Project Synopsis

Topic: Analysis of Hyperinflation in the Weimar Republic in 1923.

Name: Rajeswari Mukherjee.

Class: Second Trimester, BA. LLB. First Year.

Section: ‘B’

Roll Number: 2013BALLB117

Enrolment ID: A-1368

Statement of Purpose

The purpose of this project is to conduct a statistical and interpretive analysis of the hyperinflation in the Weimar Republic(Germany) that occurred in 1923.


The hyperinflation in the Weimar Republic was a three-year period of hyperinflation in Germany (the Weimar Republic) between June 1921 and January 1924.

The above hyperinflation occurred as a result of the over-dependence of the Weimar Republic on the American’s aid after the First World War. This aid did brilliant things for their economy, which was earlier suffering from massive unemployment. It improved production in iron, steel, automobiles, electronics and other consumer goods. It brought up employment levels. However, the American aid was crucial to their survival. And over-usage of the same led to hyperinflation.

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. When these meetings produced no workable solution, the inflation changed to hyperinflation and the Mark fell to 800 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.

By November 1923, the American dollar was worth 4,210,500,000,000 German marks. As a result of hyperinflation, there were news accounts of individuals in Germany suffering from a compulsion called zero stroke, a condition where the person has a "desire to write endless rows of [zeros] and engage in computations more involved than the most difficult problems in...

References: 1.
2. ISC History- L. Norman
3. Second Trimester Course Material prepared by Prof. Rajesh Gautam
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