Banknote Blog
Hungary’s 1946 Hyperinflation: The Worst Inflation in History and the Fall of the Pengő
Post-War Chaos and the Seeds of Hyperinflation
In the aftermath of World War II, Hungary’s economy was in ruins. The war had obliterated roughly 40% of the nation’s wealth, with an estimated 80% of the capital city, Budapest, left destroyedbbc.com. Infrastructure was shattered – nearly half of rail lines were wrecked and many factories lay in rubbledailynewshungary.com. On top of this physical devastation, Hungary was burdened with hefty war reparations (pledged at $300 million
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May 28th 2025 -