The pace of money creation accelerated after 1917 as German citizens became increasingly unwilling to purchase government debt, and the central bank was forced to monetize a growing share of the deficit.14 Although the number of marks in circulation almost doubled between mid-1917 and mid-1918, it did not cause a material decline in the currency. In fact, the mark rallied over this period as Russia’s withdrawal increased expectations of a German victory. The mark only began falling in the second half of 1918, as a German defeat began looking increasingly likely.
