What Happened When Bread Cost Millions in Germany?

During the early 1920s, Germany was plunged into unprecedented economic and political chaos following its defeat in World War I. The Weimar Republic faced mounting pressures from the Treaty of Versailles, social unrest, and a shattered economy. As the value of the German mark collapsed under the weight of reparations and excessive money printing, hyperinflation consumed the nation. In 1923, the situation reached a crisis point: prices skyrocketed, savings evaporated, and basic goods became unaffordable. In this desperate environment, local municipalities and businesses issued Notgeld—emergency money—as a temporary solution to facilitate trade. These colorful and often artistically designed notes provided an alternative means of transaction, reflecting local culture and history. Known for their variety and serial issuance, Notgeld helped communities maintain a sense of economic function amid national collapse. Two central figures in this chapter were Rudolf Havenstein, president of the Reichsbank, who oversaw emergency monetary policies, and Hermann Josef Abs, a young banker who supported innovative financial responses. Their actions symbolized the broader struggle between traditional economic principles and survival-driven innovation. Notgeld issuance became a cultural and economic phenomenon, illustrating both creativity and crisis. While it allowed daily life to continue, it also contributed to further inflation and economic instability. This video explores the historical context, causes, and consequences of Germany’s emergency money, a potent symbol of the Weimar Republic’s collapse and a cautionary tale for financial governance.