Currency reform

Currency reform, in the post-WWI context, is one of the three different ways to return to the international monetary system. Countries which have particularly lost the war were suffering from hyperinflation, due to the over-issuance of fiat money to pay for both the damage created by the war as well as reparations. These countries, such as Germany, had to turn to currency reform to replace their currencies and revalue them - Germany reintroduced the Reichsmark backed by gold at the prewar parity, which ensured stability and reliability (just like Great Britain did).

In today's sense, too, currency reform is a powerful tool, and countries that have chronically suffered from high inflation revalue their currencies to ensure credibility - Turkey, for example has reformed the lira in 2005 so that 1 million liras = 1 new lira.