Notgeld

AAA

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.

INVESTOPEDIA EXPLAINS '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. Fiat Money

    Currency that a government has declared to be legal tender, but ...
  2. Store Of Value

    Any form of commodity, asset, or money that has value and can ...
  3. Medium Of Exchange

    An intermediary instrument used to facilitate the sale, purchase ...
  4. Paper Money

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

    Extremely rapid or out of control inflation. There is no precise ...
  6. Factor Market

    A marketplace for the services of a factor of production.
RELATED FAQS
  1. What is the gold standard?

    The gold standard is a monetary system where a country's currency or paper money has a value directly linked to gold. With ... Read Full Answer >>
  2. 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 Full Answer >>
  3. How can individuals or businesses handle transaction costs for economic externalities?

    Externalities, also known as external economies, and transaction costs are two significant and evolving issues in contemporary ... Read Full Answer >>
  4. How do externalities represent profit opportunities?

    Economic externalities expose market transactions where the full costs or benefits of economic activity are not being internalized ... Read Full Answer >>
  5. How is the rule of 70 related to the growth rate of a variable?

    The rule of 70 is related to the growth rate of a variable because it uses the growth rate in its approximation of the number ... Read Full Answer >>
  6. What does a large multiplier effect signify?

    The multiplier effect depends on banks' reserve requirements. In macroeconomics, if a country exhibits a large multiplier ... Read Full Answer >>
Related Articles
  1. Budgeting

    The Gold Standard Revisited

    Think the value of gold is unshakable? Read this chronicle of its rise and fall.
  2. 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.
  3. Forex Education

    The History Of Money: Currency Wars

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

    West Coast Vs. East Coast Economy

    The East’s focus on finance and banking contrasts the West’s drive toward technological innovation. But one thing is clear--each knows it needs the other.
  5. Savings

    The 5 Countries With The Lowest Interest Rates

    Interest rates in many nations are at record low levels as of May 2015. We look at the five nations with the lowest rates.
  6. Economics

    Venezuela: Portrait of a Country in Turmoil

    Venezuela is floundering, and the story has more to do with just the falling price of oil.
  7. Forex

    The Gold Standard Versus Fiat Currency

    What do "gold standard" and "fiat system" mean for currencies and economies? Investopedia explores the history of the gold standard and the rise of fiat.
  8. Economics

    What Does Asymmetric Information Mean?

    Asymmetric information describes a situation where one party in a transaction knows more than the other.
  9. Economics

    What is Productivity?

    Productivity is an economic term describing the relationship between outputs as compared to inputs needed to produce those outputs.
  10. Economics

    How the UK Makes Money

    The United Kingdom has one of the strongest economies in the world thanks to the strength of its services, manufacturing and tourism sectors.

You May Also Like

Hot Definitions
  1. Net Worth

    The amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure ...
  2. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  3. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  4. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  5. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  6. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
Trading Center