Answer:
Germany had fought World War I largely on loans and had to pay war reparations in gold. This depleted the gold reserves in the country. In 1923, Germany refused to pay and the French occupied its leading industrial area Ruhr to claim their coal. Germany retaliated and printed paper currency ruthlessly. With too much printed money in circulation, the value of German mark fell. As the value of mark collapsed, prices of goods increased. This crisis in which Germans had to carry cartloads of currency notes to buy a loaf of bread, was known as 'hyperinflation'.
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