<P> Finally, the Law on the Revaluation of Mortgages and other Claims of 16 July 1925 (Gesetz über die Aufwertung von Hypotheken und anderen Ansprüchen or Aufwertungsgesetze) included only the ratio of the paper mark to the gold mark for the period from January 1, 1918, to November 30, 1923, and the following days . The galloping inflation thus caused the end of a principle, "a mark is worth a mark", which had been recognized, the nominal value principle . </P> <P> The law was challenged in the Supreme Court of the German Reich (Reichsgericht), but its 5th Senate ruled, on November 4, 1925, that the law was constitutional, even according to the Bill of Rights and Duties of Germans (Articles 109, 134, 152 and 153 of the Constitution). The case set a precedent for judicial review in German jurisprudence . </P> <P> The hyperinflation episode in the Weimar Republic in the early 1920s was not the first or even the most severe instance of inflation in history (the Hungarian pengő and Zimbabwean dollar, for example, have been even more inflated). However, it has been the subject of the most scholarly economic analysis and debate . The hyperinflation drew significant interest, as many of the dramatic and unusual economic behaviors now associated with hyperinflation were first documented systematically: exponential increases in prices and interest rates, redenomination of the currency, consumer flight from cash to hard assets and the rapid expansion of industries that produced those assets . </P> <P> German monetary economics was at that time heavily influenced by Chartalism and the German Historical School, which conditioned the way the hyperinflation was analyzed . </P>

Causes of hyperinflation in germany during the 1920s