Rentenmark
From open-encyclopedia.com - the free encyclopedia.
The Rentenmark was a currency issued in November 1923 to stop the hyperinflation (1922 & 1923) in Germany. It replaced the Papiermark, which was completely devalued due to the Inflation. The Rentenmark was only an intermediate currency and was soon replaced by the Reichsmark.
Due to the economic crises in Germany after the Great War there was no Gold available to back the currency. Therefore the Rentenbank, which issued the Rentenmark, mortgaged land and industrial goods worth 3.2 billion Rentenmark to back the new currency. The Rentenmark was pegged to the US Dollar at a rate of 1 Dollar = 4.20 RM. The rate of the Rentenmark to the Papiermark was 1:1,000,000,000,000 (1 trillion Papiermark).
The monetary policy spear-headed by Hjalmar Schacht - the Central Banker - together with the responsible fiscal policy of Chancellor of Germany Gustav Stresemann and Finance Minister Hans Luther brought the inflation in Germany to an end.
