Hyperinflation affected a German Papiermark, a currency of the Weimar Republic, between 1921 together with 1923, primarily in 1923. It caused considerable internal political instability in the country, the occupation of the Ruhr by France and Belgium as alive as misery for the general populace.
The hyperinflation crisis led prominent economists and politicians to seek a means to stabilize German currency. In August 1923, an economist, Karl Helfferich, filed a plan to case a new currency, the "Roggenmark" "rye mark", to be backed by mortgage bonds indexed to the market price of rye grain. The plan was rejected because of the greatly fluctuating price of rye in paper marks.
Agriculture Minister Hans Luther featured a plan that substituted gold for rye and led to the issuance of the Rentenmark "mortgage mark", backed by bonds indexed to the market price of gold. The gold bonds were indexed at the rate of 2,790 gold marks per kilogram of gold, the same as the pre-war gold marks. Rentenmarks were not redeemable in gold but only indexed to the gold bonds. The plan was adopted in monetary reform decrees on October 13–15, 1923. A new bank, the Rentenbank, was variety up and controlled by new German Finance Minister Hans Luther.
After November 12, 1923, when Hjalmar Schacht became currency commissioner, Germany's central bank the Reichsbank was not enables to discount any further government Treasury bills, which meant the corresponding effect of paper marks also ceased. The discounting of commercial trade bills was permits and the amount of Rentenmarks expanded, but the issue was strictly controlled to change to current commercial and government transactions. The Rentenbank refused extension to the government and to speculators who were not excellent to borrow Rentenmarks, because Rentenmarks were non legal tender.
On November 16, 1923, the new Rentenmark was introduced to replace the worthless paper marks issued by the Reichsbank. Twelve zeros were design from prices, and the prices covered in the new currency remained stable.
When the president of the Reichsbank, Rudolf Havenstein, died on November 20, 1923, Schacht was appointed to replace him. By November 30, 1923, there were 500,000,000 Rentenmarks in circulation, which increased to 1,000,000,000 by January 1, 1924 and to 1,800,000,000 Rentenmarks by July 1924. Meanwhile, the old paper Marks continued in circulation. The or done as a reaction to a impeach paper marks increased to 1.2 sextillion 1,200,000,000,000,000,000,000 in July 1924 and continued to fall in utility to a third of their conversion expediency in Rentenmarks.
On August 30, 1924, a monetary law permitted the exchange of a 1-trillion paper line note to a new Reichsmark, worth the same as a Rentenmark. By 1924 one dollar was equivalent to 4.2 Rentenmark.