"The German hyperinflation during the early 1920s was one of the most severe on record.  As a result of the inflation the German mark, which had been worth about two cents, fell to 0.00000000003 cents by its end.  The severity of the hyperinflation led Germans to burn banknotes to generate heat and use them as wallpaper. According to one story, a suitcase filled with money was left by its owner on the sidewalk while he went into a store; when the owner returned to retrieve the suitcase, he discovered that a thief had emptied out the money and stolen the now much lighter suitcase. Another story is of the growing practice of ordering two beers at once, since by the time the first beer was consumed, it would have been more expensive to purchase a second.”

Professor of Economics at Wesleyan University and author of WRONG: Nine Economic Policy Disasters and What We Can Learn from Them, Richard S. Grossman is sharing seven little-known facts about economic disasters all this week on Tumblr.

Image credit: German Banknote - 50 Mark - Deutsches Reich.  Public domain via Wikimedia Commons.

"The German hyperinflation during the early 1920s was one of the most severe on record.  As a result of the inflation the German mark, which had been worth about two cents, fell to 0.00000000003 cents by its end.  The severity of the hyperinflation led Germans to burn banknotes to generate heat and use them as wallpaper. According to one story, a suitcase filled with money was left by its owner on the sidewalk while he went into a store; when the owner returned to retrieve the suitcase, he discovered that a thief had emptied out the money and stolen the now much lighter suitcase. Another story is of the growing practice of ordering two beers at once, since by the time the first beer was consumed, it would have been more expensive to purchase a second.”

Professor of Economics at Wesleyan University and author of WRONG: Nine Economic Policy Disasters and What We Can Learn from Them, Richard S. Grossman is sharing seven little-known facts about economic disasters all this week on Tumblr.

Image credit: German Banknote - 50 Mark - Deutsches Reich.  Public domain via Wikimedia Commons.