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. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise ...
  3. Medium Of Exchange

    An intermediary instrument used to facilitate the sale, purchase ...
  4. Store Of Value

    Any form of commodity, asset, or money that has value and can ...
  5. Paper Money

    A country's official, paper currency that is circulated for transaction-related ...
  6. Commercial Real Estate Loan

    definition of a commercial real estate loan
Related Articles
  1. The Gold Standard Revisited
    Budgeting

    The Gold Standard Revisited

  2. An Introduction To Hyperinflation
    Economics

    An Introduction To Hyperinflation

  3. The History Of Money: Currency Wars
    Forex Education

    The History Of Money: Currency Wars

  4. What is the gold standard?
    Investing

    What is the gold standard?

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center