Causes and effects of hyperinflation

Causes and effects of hyperinflation.

-Hyperinflation occurs when production can't keep up with the amount of money there is, so the money keeps losing its value.

1. Hyperinflation in Germany was caused by the sudden flood of paper money into an economy weakened by war, combined with the general strike. 
2. The inflation rate rose so dramatically that the German currency lost practically all value. Paper money was worthless (a loaf of bread which cost 250 marks in January 1923 had risen to over 200,000 million marks by November 1923.)

-The results were severe...

1. German workers who were paid monthly were greatly affected, as the value of their money would decrease a lot before they were paid again.
2. The middle classes lost out as bank savings became worthless.
3. There was a rise in crime as Germans became desperate.
4. The elderly suffered greatly as their income was fixed.
5. The German Mark became worthless.