Anteroom to the Forint: Monetary Law Aspects of the Temporary Period of Issuing Money in Hungary under the Supervision of the Temporary National Government (1944–1945)

Abstract

This study presents the destruction of the Hungarian currency caused by the Second World War. The devastation caused by Nazi collaboration and the Soviet Red Army had an impact on the Hungarian “pengő”. The occupying Soviets tried to take advantage of all this and interfered with the circulation of money to increase their own political influence. They printed their own banknotes, which were later used to pay by the Hungarian National Bank. The Provisional Government tried to stop inflation after the war and then tried to resist Soviet pressure and to restore cash flow in Hungary, as well.