German Hyperinflation
Why did Germany print so much money?
To pay war reparations and cover government deficits.
What caused Japan's "Lost Decades"?
The bursting of its asset bubble in the early 1990s.
What happens when prices keep falling(Deflation)?
People delay spending.
What is hyperinflation?
Prices rising extremely quickly, causing money to lose value.
What is deflation?
Persistent drop in general prices.
Which causes money to lose value rapidly?
Hyperinflation.
What currency helped end German hyperinflation?
The Rentenmark(Backed by land value).
Why does deflation make debt harder to repay?
Fixed debt payments grow heavier as income shrinks
Why are both hyperinflation and deflation harmful?
Both disrupt price stability and damage the economy.