This page considers how the hyperinflation crisis in Weimar Germany finally ended.

1. The end of
hyperinflation

2. It was obviously essential that
hyperinflation was quickly
ended – something recognised
in Germany and abroad.
All groups feared a rise of
extremism in response to the
crisis, something which could
increase economic and political
instability across Europe.

3. In August 1923, Gustav
Stresemann was appointed as
Germany’s new Chancellor.
In September 1923,
Stresemann announced the end
to resistance to the occupation
of the Ruhr.
On November 16, 1923 the
Reichsbank mark was
replaced by the Rentenmark.

4. The Rentenmark involved 12
zeroes (000,000,000,000) being
taken off prices. It was sub-
divided into 100 Rentenpfennig.
This new currency was very
stable, and ended the crisis. For
instance one German newspaper
cost that cost 1 billion marks in
November only cost 20
pfennigs by December.

5. Rentenmark’s were successful
because only a limited
number of notes were printed,
which made it harder for them
to lose their worth. Their value
was also backed by real assets.
Governments and businesses
could not borrow
Rentenmarks, as they were
only a temporary currency.

6. Eventually on 30 August 1924,
a new permanent currency –
the Reichsmark – was
introduced. One Reichsmark
was equivalent to one
Rentenmark.
Although the Reichsmark was
the official currency, both
remained in use in Germany
until 1948.

7. A common belief is that
hyperinflation undermined
democracy, allowing the rise of
extremist parties.
Whilst true, many Germans
gave Weimar their backing
because the crisis ended
quickly. Right-wing parties saw
support increase but did not
win control of the government.

8. Historians’ views
• Mary Fulbrook: “The psychological shock eroded democratic
values and instilled a … fear of … economic instability.”
• Hans Mommsen The desperate conditions that had been
created by the hyperinflation crisis encouraged a process of
extreme political polarisation.
• A J Nicholls Popular faith in the Republican system ‘was badly,
and in some cases permanently shaken’ by the events of 1923.
The collapse of the currency ‘left behind it a legacy of
resentment’, especially among the lower middle class.