0
By not printing more money which is the primary cause, stabilizing the economy, de-tendering older money and creating new money that can be exchanged at a large ratio... for instance, 1 Reichsmark for 1,000,000,000 Papiermarks.
Of course, now that "western" countries do so much of their financial transactions electronically and with credit, the printing of actual money is less directly related to inflation and the concept is more commonly used as a metaphor for the increase of the money supply thorough other mechanisms, some of which are not as directly controlled by the government as is the printing press.
Wiki User
∙ 14y ago
Add your answer:
Earn +20 pts
When the German government increased the quantity of money in the German economy in the 1920s?
government experienced hyperinflation
Is hyperinflation a disadvantage of capitalism?
No
What does hyperinflation refer to in economics?
When referring to economics hyperinflation means when a country experiences high and accelerating rates of inflation. When hyperinflation occurs price levels in an economy rise, while the value of currency drops quickly.
When did Philippines have hyperinflation?
Because the Japanese-controlled government, during the WWII occupation, issued fiat currencies, while at the same time outlawing possession of other currencies, in an attempt to curtail any possible resistance.
Is it possible for a government's solution to a market failure to worsen the failure?
Yes. If the government does not alleviate the cause of the failure, it will likely absorb economic resources and causes inefficiences/deadweight social loss which will only make things worse (aka - more costly). Examples: the Great Depression; Germany hyperinflation of the 1920s.
When the German government increased the quantity of money in the German economy in the 1920s?
government experienced hyperinflation
Was the Weimar Government liked by the Germans?
No they were not it led to years of hyperinflation which eventually led to the rise of Adolf Hitler
Why were the Germans unble to p ay all of the reparation assessed by the treaty of Versailles?
They had an unstable government and massive hyperinflation.
How could the weimar government have solved Hyperinflation?
In fact, the inflation was stopped and the currency stabilized in 1923-24. It involved massive deflation and was successful.
In order to finance a war the government prints a great deal?
In order to finance a war, the government prints a great deal of money without gold to back it up. This will eventually lead to hyperinflation.
What is the range of hyper inflation?
Hyperinflation is an extremely rapid or out of control inflation and there is no precise numerical definition to hyperinflation. Hyperinflation is a situation where the price increases are so out of control that the concept of inflation is meaningless.
What does lung hyperinflation stimulate?
Lung hyperinflation stimulates pulmonary stretch receptors. A person who experience lung hyperinflation can end up having COPD or chronic obstructive pulmonary disease.
Was hyperinflation caused by the french invasion of the ruhr in 1923?
Partially. However, it was caused by other significant factors such as the treaty of Versailles and the government not being able to afford to pay the repetitions. Which in turn meant they printed more marks, this reducing the value of the money itself. Thus, beginning hyperinflation.
Who was guilty for hyperinflation in germnay?
Me.
Is hyperinflation a disadvantage of capitalism?
No
What is a government insured reverse mortgage?
Most reverse mortgages today are government insured reverse mortgages. This simply means its an FHA loan. The FHA HECM program insures the loan to the lenders, provided they follow FHA's guidelines for doing reverse mortgages.
What does hyperinflation refer to in economics?
When referring to economics hyperinflation means when a country experiences high and accelerating rates of inflation. When hyperinflation occurs price levels in an economy rise, while the value of currency drops quickly.
