Part 3/15:
The Seeds of Economic Collapse: Germany’s War Economy and Hyperinflation
Before the outbreak of World War I in 1914, the German mark was a stable and trusted currency, bolstered by Germany’s burgeoning industrial economy. However, total war strained this stability to the breaking point. Wartime expenses led the German government to abandon the gold standard, opting instead to create new credit institutions and print money to fund the war effort. This unchecked money printing made it possible for companies and individuals to borrow extensively, fostering an environment ripe for inflation.