Effects of Hyperinflation

The Effects of Hyperinflation:

WINNERS of HYPERINFLATION:

• The Germans who were able to PAY OFF their DEBTS, MORTGAGES & LOANS with worthless money, where winners of hyperinflation.
• This included LANDOWNERS, BUSINESSMEN & HOMEOWNERS.
• Some of these groups brought MORE REAL ESTATE from the naive and desperate, which resulted in great GAINS.
  • E.g. Big businesses EXPLOITED the CHEAP CREDIT to create LARGE business.
  • HUGO STINNES- he CONTROLLED a fifth of GERMAN INDUSTRY by the end of 1923.
• The German STATE was the BIGGEST FINANCIAL BENEFICIARY, to an extent, because hyperinflation RELIEVED some of their CRIPPLING DEBT.

LOSERS of HYPERINFLATION:

• Those who had SAVINGS had LOST OUT from hyperinflation.
• Especially…