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What is Hyperinflation?
When a government prints too much paper money it then looses value very quickly causing rapid
rises in prices. Hyperinflation is when prices go up to ten, a hundred times or even more in a short
space of time.
Why did it happen?
The Weimer government was short of money after the First World War and began to print more
money. The situation was worsened when the government was unable to make its first reparation
payments in 1922. French troops occupied the Ruhr and the German government was forced to print
more notes. By November 1923 the German mark was worthless.