Hungarian pengő - Knowledge

350: 338: 1963: 1495: 1434: 1480: 1468: 1977: 1156: 962: 57: 1526: 1313:, and on 9 July the same year, the tax bills became legal tender. According to William Bomberger and Gail Makinen in October 1983, the issuance of the tax bills escalated the hyperinflation that eventually affected both regular pengős and adópengős—but the adópengő nevertheless forced the regular pengő into disuse as prices expressed in the latter became unbearable. 1138:

later, even bronze and cupro-nickel coins were replaced by coins made of cheaper metal. In one of the last acts of World War II, the Szálasi government took control of banknote printing and issued notes without any cover, first in Budapest, then in Veszprém when Budapest had to be evacuated. The occupying Soviet army issued its own military money according to the

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In 1926, coins of 1, 2, 10, 20 and 50 fillér and 1 P were introduced. The 1f and 2f pieces were bronze, the 10f, 20f and 50f were cupro-nickel and the 1 P coins were 64% silver. In 1929, 2 P coins were introduced, also in 64% silver. Commemorative 2 P and 5 P coins were also

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for budget planning: the idea was that by setting the value of the adópengő in terms of regular pengős every day, the adópengő would try to protect the government budget from the effects of hyperinflation. The value of the adópengő in terms of regular pengős started at par, but the rate declined to

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A new series of banknotes soon had to be printed to meet higher security standards. The engravings were executed and designed by Endre Horváth, a Hungarian graphic artist. New 5 P, 10 P, 20 P, 50 P and 100 P pengő notes were printed and a 1000 P banknote was added to

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The Hungarian National Bank issued the first series of 5 P, 10 P, 20 P, 50 P, 100 P banknotes in the last days of 1926. These were offset prints on watermarked paper (except for the 5 P note). The banknotes featured notable Hungarian people on the obverse and either

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The war caused enormous costs and, later, even higher losses to the relatively small and open Hungarian economy. The national bank was practically under government control, and the issue of money was proportional to budgetary demands. By this time, silver coins disappeared from circulation, and,

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After the Vienna Award, Hungary had to supply its recovered territories with money. Since increasing the amount of silver coins would have been too expensive, 1 P and 5 P notes were issued in 1941 and 1938, respectively. These notes were of simple design and poor quality. Meanwhile, a

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to gold. In the beginning the cover ratio (which included gold and – up to 50% – foreign exchange) was fixed at 20%, but this had to be raised to 33.3% within five years. This goal was reached quickly: the cover ratio was 51% on 31 July 1930. Later it decreased somewhat due to the

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this series - however, the latter had such a high value that it was rarely used except for large cash transactions between businesses and banks. This new series had almost the same features as the previous ones. 5 P notes were soon replaced with silver coins.

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The effects of the Great Depression reached Hungary after 1930, with agriculture being affected the most. The pengő had to be devalued, and the country's debt increased. After a short period of recovery, war preparations – the most important of which was the

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During the Second World War, the 1 f. coin ceased production, the 2 f. coins were issued in steel and then zinc, the 10 f. and 20 f. coins were minted in steel and the 1 P, 2 P and 5 P pieces were struck in aluminium.

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equivalent to English 'ring') and was used from the 15th to the 17th century to refer to silver coins making a ringing sound when struck on a hard surface, thus indicating their precious metal content. (The onomatopoeic word used for gold coins is

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was probably chosen to suggest stability. However, there was some controversy when choosing the name of the new currency, though the majority agreed that a Hungarian name should be chosen. Proposals included

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At the beginning of the First World War precious metal coins were recalled from circulation, and in the early 1920s all coins disappeared because of the heavy inflation of the Hungarian korona. The name

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The reform also attempted to reduce the risk of hyperinflation on the forint, by setting the exchange rate for gold at 13.21 forints per gram: however, nobody could convert forints at that rate.

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was an attempt to limit inflation. It slowed inflation somewhat, but did not stop the depreciation of the currency. Bonds were issued by the Ministry of Finance in denominations between

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The enormous amount of paper consumed during the production of adópengő notes caused a shortage of good quality security paper; this hindered the production of forint banknotes.

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series of new banknotes including 2 P, 5 P, 10 P and 20 P denominations was issued. The designs represented ornaments based on Hungarian folk art and people.

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At the end of the Second World War, the Szálasi government and the occupying Soviet army issued provisional notes in the territories under their power, exacerbating inflation.

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in December 1945. However, this did not stop the hyperinflation, and prices continued spiraling out of control, with ever-higher denominations introduced. The denominations

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The hyperinflation was so out of control that at one stage it took about 15 hours for prices to double and about four days for the pengő to lose 90% of its original value.

1252:) P) were used to simplify calculations, cut down the number of zeros and enable the reuse of banknote designs with only the colour and denomination name changed. 634:

The denomination of the banknotes was indicated in the languages of ethnicities living in the territory of Hungary. The name of the currency was translated as follows:

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adópengő. These simple design notes on low-quality paper became legal currency in the last months of the hyperinflation, almost completely replacing the pengő.

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The 1000 P banknote was, along with 10 P and 100 P notes, only issued as part of the Veszprém series, during which coins were never issued.

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or 10 P). During the period of hyperinflation, note designs were reused, changing the colour and replacing the word pengő with first milpengő, then

1387:= 76 million billion billion) on 15 July 1946. The conversion rate therefore reduced the peak value of all circulating pengő notes to 0.019 filler ( 2889: 1306: 2325: 1402: forint), allowing the Hungarian National Bank to start over without having to redeem regular pengő notes. By contrast, the largest 3078: 3035: 3015: 1403: 1310: 569: 2882: 2479:

Bomberger, W. A.; Makinen, G. E. (1980). "Indexation, Inflationary Finance, and Hyperinflation: The 1945–1946 Hungarian Experience".

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in 1938 and 1940 were economically less developed; this was an additional factor which aggravated the country's economic situation.

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Ultimately, only a new currency could stabilize the country's financial situation. On 1 August 1946, Hungary reintroduced the

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In 1945, the provisional government introduced new aluminium 5 P coins, the last issued before the hyperinflation.

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According to Bomberger and Makinen, the circulation of regular pengő notes peaked at around 76 septillion pengős (

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Bomberger, William; Makinen, Gail (October 1983). "The Hungarian Hyperinflation and Stabilization of 1945-1946".

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Corpus notarum pecuniariarum Hungariae I-II. (Magyar Egyetemes Pénzjegytár) (General Hungarian Banknote Catalog)

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Measuring the Inflation of Parallel Currencies: An Empirical Reevaluation Of the Second Hungarian Hyperinflation

1428: 1040: 762: 3083: 2362: 2033: 1177: 983: 832:. This currency suffered a high rate of inflation during the early 1920s. A stabilisation program covered by a 3003: 2169: 1464:

different locations in Budapest or paintings on the reverse; the banknotes also served educational purposes.

940:, which in turn led to the depreciation of the pengő currency. The territories given back to Hungary by the 2481: 1416: adópengős) was worth 50 fillérs each, and remained in circulation for a short time after the reform. 1321:

On 11 July 1946, the Hungarian National Bank released the last pengő banknotes, for 100 million B-pengős (

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stabilisation program, the currency survived for only 20 years and experienced the most serious case of

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loan helped bring down inflation, and the korona was replaced on 1 January 1927 by a new currency, the

564:, an equivalent of English 'clinking' meaning a sharper sound; the participle used for copper coins is 258:-mil.‑P, 1 million-mil.‑P, 10 million-mil.‑P, 100 million-mil.‑P, 1 trillion-mil.‑P 17: 2959: 2931: 1995: 1286: 1264: 1166: 1099: 1023: 972: 874: 817: 745: 620: 374: 322: 93: 1510:, to generate higher denominations. The largest denomination produced was 100 million b.-P (100 2938: 2062: 2010: 825: 628: 2329: 2835: 2015: 821: 588:

literally meaning 'ringing forint', figuratively meaning 'silver forint' or 'hard currency'.

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https://upload.wikimedia.org/wikipedia/commons/8/88/The_Hanke_Krus_Hyperinflation_Table.pdf

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ever recorded in human history. There were several attempts to slow it down, such as a 75%

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In 1945 and 1946, hyperinflation caused the issuance of notes up to 100 million b.-P (100

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Magyarország fém- és papírpénzei 1926-1998 (Coins and paper money of Hungary 1926-1998)

2217: 1968: 1329:= one sextillion), but they never entered circulation. The last adópengő banknote, for 941: 866: 573: 496: 460: 46: 2117: 1111:

1 P, 2 P, 5 P, 10 P, 20 P, 50 P, 100 P, 1000 P

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1 f., 5 f., 10 f., 20 f., 50 f., 1 P, 2 P, 5 P

2510: 2465: 2446: 2427: 2380: 2358: 2262: 2221: 2209: 2163: 2079:(the Law No. XXXV 1925 – definition of the pengő value and related regulations) 1990: 833: 698: 2076: 2966: 2945: 2874: 2625: 2578: 2490: 2379:. Colin R. Bruce II and Neil Shafer (editors) (7th ed.). Krause Publications. 2201: 2091: 2005: 1351: 854: 829: 828:

had to be replaced with a different currency, which in the case of Hungary was the

521: 517: 325: 304: 243: P, 1 million-P, 10 million-P, 100 million-P, 1 trillion-P 2310: 2289: 737: 663: 648: 427: 80: 2303: 1442:

issued on anniversaries, with a non-commemorative 5 P coin issued in 1939.

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