HyperinflationThe author examined the case study presented in the critical thinking exercise, When Money Loses Its Meaning. The case study describes the disaster of hyperinflation in Germany in the 1920s. Furthermore, the case study describes similar situations in other countries, including Bolivia in the 1980s, Hungary after World War II, and Yugoslavia in the 1990s. In this article, the author will discuss the reasons behind the hyperinflation disaster in Germany, the prospect of hyperinflation in the United States, and the role of the Federal Reserve in controlling inflation. The Disaster of Hyperinflation in Germany Official money in Germany became worthless in the 1920s due to hyperinflation. According to Barnes (2009), hyperinflation occurs not only because a government prints money without collateral, but also because citizens are no longer willing to hold money for fear of it losing its value (para. 4). Through a series of events, this is exactly the hyperinflation scenario that occurred in Germany in the 1920s. First, Germany financed its war efforts in World War I by issuing bonds and printing money, on the premise that conquered countries would repay the debts (Gethard, 2011, para. 5). However, Germany's plans to repay its debts did not materialize. With the signing of the Treaty of Versailles, Germany was required to pay reparations to the Allies (Gethard, 2011, para. 6). With an already declining Deutsche Mark, Germany failed to pay reparations in the winter of 1922–1923, resulting in France and Belgium taking “control of the Ruhr, Germany's industrial powerhouse” (Gethard, 2011, para. 7). Germany then encouraged its workers to strike and supported them by printing even more money (Gethard, 2011, para. 8). As Germany printed huge amounts of money, a rapid devaluation of the German mark occurred (Barnes, 2009, par.. 7).