German children playing with stacks of money during the hyperinflation period of the Weimar Republic, 1922
From August 1921, Germany began to buy foreign currency with marks at any price, but that only increased the speed of breakdown in the value of the mark.As the mark sank in international markets, more and more marks were required to buy the foreign currency that was demanded by the Reparations Commission.In the first half of 1922, the mark stabilized at about 320 marks per dollar.International reparations conferences were being held. One, in June 1922, was organized by US investment banker J. P. Morgan, Jr.The meetings produced no workable solution and so inflation changed to hyperinflation, and the mark fell to 7,400 marks per US dollar by December 1922. The cost-of-living index was 41 in June 1922 and 685 in December, a 15-fold increase.Inflation was exacerbated when workers in the Ruhr went on a general strike and the German government printed more money to continue paying for their passive resistance. By November 1923, the US dollar was worth 4,210,500,000,000 German marks.
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