15.11.2023 - Studies

100 Years of Rentenmark

by Thomas Mayer

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The introduction of the Rentenmark exactly 100 years ago, on November 15, 1923, was a coup in terms of monetary policy. The old mark had been misused for state financing and at that time had reached an astronomical exchange rate against the dollar. With the introduction of the Rentenmark, hyperinflation came to an abrupt end and the state was relieved of its debts. The population was relieved and accepted the new mark immediately. 

Today, the national debt is as high as it was in times of war. Debt relief will be necessary sooner or later. The further development of the digital euro into a covered money along the lines of the Chicago Plan would make this possible without major upheavals. However, the pressure of the problem is much lower today than it was 100 years ago. Politicians will therefore not dare to take such a bold step (in German only).

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