A2: Historical Hyperinflation Analysis
Hyperinflation in Hungary
Period: 10 minutes
- Intro, Thesis
- Root Cause
- Background
- Impact
- Solution
- Conclusion: overview of what health/condition the country’s economy is in.
10 minutes Q&A
Don’t need to much detail, its a informing presentation
The Worst Case Of Hyperinflation In History
Hungary was no stranger to hyperinflation. The Austro-Hungarian Empire was on the losing side of World War I and was broken up after the war. The new nation of Hungary lacked the proper government structures, so it turned to printing money to fill the hole in its budget. Before World War I, there were 5 Kronen to the US Dollar, but by 1924 there were 70,000 Kronen to the US Dollar. So Hungary replaced the Kronen with Pengö at the rate of 12,500 Pengö to the Kronen in 1926.
Hungary was spared much of World War II’s destruction until 1944 when it became a battleground between Russia and Germany, and half of Hungary’s industrial capacity was destroyed and 90% was damaged.
Although the case of hyperinflation in Hungary after World War II is not much acknowledged, it is the worst case of hyperinflation of any nation ever at the time. The country has had a history with hyperinflation before, in the post-World War I Austro-Hungarian break. In just the period of two years, from 1922 to 1924, the currency at the time, krone, had devalued 263 times over. In the case of World War II however, inflation rate was 41.9 quadrillion or 41.9x10^15 percent in per month of 1946.
Pengö
Milpengö
Bilpengö
Milliard Bilpengö
Forint