Notgeld

DEFINITION of 'Notgeld'

A German term that means "emergency money." Notgeld denotes a form of quasi-currency that is issued by a body other than a central bank - which is generally the only official issuer of a nation's currency - and therefore, is not legal tender. The term is widely used to describe such emergency money following its best-known example, the colossal amount of notgeld paper money printed in Germany during the period of hyperinflation after World War I.

BREAKING DOWN 'Notgeld'

While notgeld is most commonly issued in the form of paper money, it has also been issued in other forms such as coins and stamps. Notgeld was printed in abundance and in a variety of styles in Germany after World War I, with 36,000 different types of notes issued by over 3,500 towns, cities and firms. With an estimated total face value of over 500 trillion marks printed in Germany, most notgelds had very little intrinsic monetary value.

RELATED TERMS
  1. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise ...
  2. Paper Money

    A country's official, paper currency that is circulated for transaction-related ...
  3. Money

    An officially-issued legal tender generally consisting of currency ...
  4. Inflation

    The rate at which the general level of prices for goods and services ...
  5. National Currency

    The currency or legal tender issued by a nation's central bank ...
  6. Hedged Tender

    A strategy in a tender offer where an investor short sells a ...
Related Articles
  1. Economics

    An Introduction To Hyperinflation

    Hyperinflation isn't some historical curiosity. It is a very real risk that countries and governments still struggle with today.
  2. Forex Education

    5 Tales Of Out-Of-Control Inflation

    Hyperinflation can make a $1,000 bill look like chump change.
  3. Forex Education

    The History Of Money: Currency Wars

    Find out how conflicts have changed the role money plays in our lives.
  4. Economics

    Is The EU Holding Germany Back?

    As Germany agrees to initiate bailout talks with Greece once again, could all of the EU's economic turmoil result in Germany being better off alone?
  5. Markets

    Economic Conditions That Helped Cause World War II

    Dire economic conditions following the First World War intensified antagonisms between nations that would eventually lead to the outbreak of World War II.
  6. Stock Analysis

    Bets For A Strong Germany

    As one of the top exporters of capital and industrial goods, Germany should be on investors' radars. Here's how to play it.
  7. Economics

    Why Germany Is The Economic Powerhouse Of The Eurozone

    There's little denying that Germany is the boss of the eurozone. Discover what sets it apart from the rest of Europe.
  8. Retirement

    Money Market: Commercial Paper

    For many corporations, borrowing short-term money from banks is often a laborious and annoying task. The desire to avoid banks as much as possible has led to the widespread popularity of commercial ...
  9. Economics

    Understanding How the Federal Reserve Creates Money

    Read about how the Federal Reserve actually targets and creates new money in the economy, and find out why the savings and loans system magnifies this process.
  10. Investing

    Is Money in Your Pocket Worth the Same as Your Money in the Bank?

    Cash in your pocket is a different form of money than that in your bank account, and it takes a strong institutional infrastructure for them to be equal.
RELATED FAQS
  1. What are some historic examples of hyperinflation?

    Learn how skyrocketing prices can result in an economy spiraling into hyperinflation, as happened in Germany, Zimbabwe and ... Read Answer >>
  2. What's the difference between hyperinflation and inflation?

    Learn the difference between inflation, which can be a normal part of economic fluctuation, and potentially economy-killing ... Read Answer >>
  3. Can a business ever be too small to issue commercial paper?

    See why market forces regulate the size of companies that issue commercial paper, even though there are no official regulations ... Read Answer >>
  4. When did the U.S. start using paper money?

    On February 3, 1690, the Massachusetts Bay Colony issued the first paper money in the U.S., in order to pay for its war. ... Read Answer >>
  5. What are some examples of securities that can be found in a money market fund?

    Learn about examples of securities found in money market accounts. These securities need to be safe, liquid and of short-term ... Read Answer >>
  6. What happens to the shares of stock purchased in a tender offer?

    Learn what a tender offer is, whether it is a good idea to accept a tender offer and what happens to the shares of stock ... Read Answer >>
Hot Definitions
  1. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  2. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  3. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  4. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  5. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  6. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
Trading Center