Perhaps the best-known example of hyperinflation, though not the worst case, is that of Weimar Germany. In the period following the World War I, Germany suffered severe economic and political shocks, resulting in large part from the terms of the Treaty of Versailles that ended the war. The treaty required payment of reparations by the Germans through the Bank for International Settlements for the damage caused by the war to the victorious countries. The terms of these reparation payments made it practically impossible for Germany to meet the obligations, and indeed, the country failed to make the payments.
Prohibited from making payments in their own currency, the Germans had no choice but to trade it for an acceptable "hard currency" at unfavorable rates. As they printed more currency to make up the difference, the rates worsened, and hyperinflation quickly took hold. At its height, hyperinflation in Weimar Germany reached rates of more than 30,000% per month, causing prices to double every few days. Some historic photos depict Germans burning cash to keep warm because it was less expensive than using the cash to buy wood.