Hyperinflation

After WW1, The Germany had to pay a huge amount of reparations.The total reparations demanded was 132,000,000,000 (132 billion) gold marks, of which Germany only had to pay 50 billion marks (a sum less than what they had offered to pay). But Germans cannot afford to pay on time''.Because reparations were required to be repaid in hard currency and not the rapidly depreciating Papiermark, one strategy Germany employed was the mass printing of bank notes to buy foreign currency which was in turn used to pay reparations. This greatly exacerbated the inflation rates of the paper mark.'' Source: wikipedia. The money printed was so much that people's savings are useless and the people in Germans are suffering from zero stroke. This means ''"desire to write endless rows of [zeros] and engage in computations more involved than the most difficult problems in logarithms."[14].For example, 1kg of bread in 1913 was 0.29 marks but during the hyperinflation, it was 428000000000 marks. and money was a waste and even children are playing with it.This caused German prices of goods to rise rapidly, increasing the cost of operating the German government, which could not be financed by raising taxes because those taxes would be payable in the ever-less-valuable German currency. The alternative was some combination of running a budget deficit and simply creating more money, each of which increased the supply of German currency on the market and reduced that currency's price. When the German people realised that their money was rapidly losing value, they tried to spend it quickly. This increase in monetary velocity caused still more rapid increase in prices, creating a vicious cycle.[37] This placed the government and banks between two unacceptable alternatives: if they stopped the inflation this would cause immediate bankruptcies, unemployment, strikes, hunger, violence, collapse of civil order, insurrection, and revolution.[38] If they continued the inflation they would default on their foreign debt. The attempts to avoid both unemployment and insolvency ultimately failed when Germany had both.This explains that the Germany government had made the people in Germans suffer a lot.