The Economy of Hungary
The 1946 Hyperinflation
After World War II, Hungary suffered the worst hyperinflation ever recorded, with prices doubling every 15 hours at the peak.
A world record.
Cause
War destruction, reparations and printing money to finance deficits.
Peak
In mid-1946, prices doubled roughly every 15 hours, and the highest note was for 100 quintillion pengő.
End
The forint was introduced in August 1946 with a stabilisation plan.
Lesson
Hyperinflation destroys savings and trust in money.
A note bigger than a country's GDP
The largest denomination note was worth trillions of times what a person earned in a year.
Believing hyperinflation is only about high prices
It destroys the monetary system.
Key takeaways
- Hungary had the worst hyperinflation on record.
- War and money printing caused it.
- The forint was introduced in 1946.
- Trust in money was lost.
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