The precursor to Hungarian hyperinflation was the disaster of World War II, which initiated the fixed blade of the Horthy system, the new currency was put into circulation in 1926, and already at the end of 1944 the slope bottomed out – by which time the Hungarian currency had fallen to twenty-sixth of its 1938 value. But even this was very high by 1945, reducing the value of the blade by sixty-seconds over the previous year. In addition to a shortage of goods, Hungary was characterized by a shortage of money, which encouraged the Provisional Government to start a banking press, and this, he writes, was not without consequences. Rubicon.hu.
The situation was worsened by the fact that Bela Miklos Dalnogi, Soltan DildiAfter Ferenc Nagy The led governments attempted a careful balance between cash shortages and economic collapse, while the Red Army, which had acquired the right to use the bank press, dispersed debased banknotes uncontrollably. Inflationary events peaked in the summer of 1946, when the rate of currency depreciation rose. This was also shown by the prices of the time: for example, in August 1945 the price of a kilo of bread was 6 bengos, on the other hand, at the beginning of May of the following year, 8 million bengos had to be paid. 5.85 billion) at the end of June. The peak of inflation occurred in July 1946, when the value of Benco fell to 41,900 trillion in a single month.
That means the price doubles every 15 hours on average.
Eventually, as in Bethel’s consolidation, the government was able to control hyperinflation by introducing a new currency and strictly monitoring the budget. The new coin appeared on the money markets on August 1, 1946, and during its conversion a single 1 forint coin sold for 400,000 quadrillion – ten of the twenty-ninth pengo. The Great Government’s fiscal reform has fueled the highest inflation in history, surpassed only by the 2008 Zimbabwean dollar crash under Robert Mugabe.