📜 Hungary’s Hyperinflation of 1945–46: The World’s Most Extreme Banknote Crisis
When collectors speak of “extreme banknotes,” few historical episodes compare to the Hungarian hyperinflation of 1945–46 — the most severe inflationary period in recorded history. This extraordinary time produced not only staggering economic chaos but also some of the most fascinating and collectible banknotes ever issued.
🏚 The Aftermath of War and Economic Collapse
In the wake of World War II, Hungary was devastated. The economy had been drained by war spending, looted by occupying armies, and crippled by damaged infrastructure. The country’s pre-war currency, the pengő, began to lose value rapidly.
By mid-1945, the National Bank of Hungary was printing money around the clock to cover government deficits and reconstruction costs. Prices doubled every 15 hours by July 1946 — a pace unmatched by any other inflation in history.
💸 From Thousands to Trillions… to the Milliard B.-pengő
As inflation skyrocketed, the Hungarian government issued ever-higher denominations to keep up. What began with 1,000 pengő notes in 1944 quickly spiralled into:
- 10,000,000 pengő (10 million) by early 1946
- then 1,000,000,000,000,000,000 pengő (1 quintillion), and finally
the mind-boggling 100,000,000,000,000,000,000 (100 quintillion) pengő, the highest denomination ever printed.
The government even introduced a new unit of account, the adópengő (tax pengő), and later the milpengő and b.-pengő (billion pengő), which were used to simplify accounting for absurdly large numbers.
These notes are often prized today for their surreal denominations and minimalist designs, reflecting a printing system pushed to the brink.
🧾 A Collector’s Dream – And a Cautionary Tale
To collectors, these banknotes are more than just high numbers. They represent a vivid moment in history when paper money lost all value. Imagine: at the peak of the crisis, one US dollar was worth 4.6 octillion pengő (that’s a 46 followed by 27 zeros).
Yet despite the chaos, the Hungarian mint continued issuing beautifully designed notes, often with subtle color variations, security features, and evolving paper quality — a field rich for study and comparison.
Rare notes from this period, such as unissued proofs, specimen notes, or pristine high denominations, can fetch impressive prices in the collector market.
🇭🇺 Stabilization: Enter the Forint
On August 1, 1946, the government introduced a new currency — the forint — to replace the pengő. One forint was worth 400 octillion pengő. The transition ended the inflation, bringing much-needed stability to a country desperate for economic recovery.
Today, Hungary’s hyperinflation stands as a stark reminder of how fragile paper money can be — and a rich chapter for collectors and historians alike.
🏆 Collecting Tips for Hyperinflation-Era Hungarian Notes
- Look for complete series from the Milpengő and B.-pengő ranges.
- Check for condition — despite high print volumes, uncirculated examples are sought after.
- Be aware of forgeries, especially for rarer notes.
- PMG certification can add value and trust when buying or selling.
Want to start or expand your collection of Hungary’s hyperinflation notes?
🛒 Check out our Hungary collection here at ExtremeBanknotes.com!