Econ::The Stabilization of the Mark | Angry Bear – Financial and Economic Commentary

Those people were mostly speculators who had borrowed marks. Since the stabilization wasn’t absolutely believed, the nominal interest rate was 20% per day. Making people wait a few days for their promised dollars is a way to bankrupt them. Bankrupting all the people betting against the stabilization is a way to make it work.

via The Stabilization of the Mark | Angry Bear – Financial and Economic Commentary.