ABSTRACT
Chapter 3 sets the first modern wave of hyperinflation, which occurred in the twentieth century, into a broad historical and intellectual background; it examines Germany and Soviet Russia, with special reference to factors related to international relations and ideology. The large scale of the incidence of hyperinflation in the early 1920s in Central and Eastern Europe clearly demonstrates how global political and economic systems had been shifting and struggling to navigate the heyday of capitalism and industrialization. The Treaty of Versailles and its resultant League of Nations were symbols of both progress and frustration during the period between the two world wars. Their principles and actions greatly impinged on both the occurrence and the cessation of hyperinflation at the time.
