Characterisation of Hyperinflation in the Weimar Republic (1922 to 1923)

How changes in the money supply, economic growth, and savings levels affect inflation and when and why inflation might escalate into hyperinflation.


This content originally appeared on HackerNoon and was authored by Hyper Inflation

:::info Author:

(1) Laurence Francis Lacey, Lacey Solutions Ltd, Skerries, County Dublin, Ireland.

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:::tip Editor's Note: This is Part 5 of 7 of a study on how changes in the money supply, economic growth, and savings levels affect inflation. Read the rest below.

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3.2 Characterisation of Hyperinflation in the Weimar Republic (1922 to 1923)

The monetary and price hyperinflation of in the Weimar Republic between the middle of 1920 to the end of November 2023 is investigated in this paper and the data analysed are based on the value of one gold Mark in paper Marks over this time period (obtained from [14]) and are plotted in Figure 6 (semi-log plot).

\ This is a clear case of hyperinflation that is double exponential in nature [6,13]. In the nomenclature of this paper, t * occurred when t = 23 months (July 1922).

\ When t < 23,

\

\ where, PI(t) is price inflation, with a growth rate of 10.4% per month (inflation velocity), and where 10 is the value of PI(t) at t = 0.

\ When t ≥ 23,

\

\ During this period of hyperinflation, the acceleration in price inflation was 11.8% per month.

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:::info This paper is available on arxiv under CC BY-NC-ND 4.0 DEED license.

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This content originally appeared on HackerNoon and was authored by Hyper Inflation


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