Estonian mark facts for kids
The Estonian mark was the official money used in Estonia from 1918 to 1928. It was divided into 100 smaller units called penns. This currency was very important for Estonia as it became an independent country after World War I.
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What Was the Estonian Mark?
The Estonian mark was the first national currency of the Republic of Estonia. It was introduced in 1918, right after Estonia declared its independence. Before this, different types of money were used, including the Russian ruble and German ostmark.
Why Did Estonia Need Its Own Money?
After World War I, Estonia became a free country. Having its own money was a big step. It showed that Estonia was truly independent. A national currency helped the new government control its economy. It also made it easier for people to buy and sell things.
How Was the Mark Used?
The Estonian mark was used for all daily transactions. People used it to buy food, clothes, and other goods. Businesses used it for trade and paying workers. The government also used it to collect taxes and pay for public services.
Different Types of Marks
The Estonian mark was issued in different forms. There were paper banknotes and metal coins. The banknotes came in various values, from small penns to larger mark denominations. The design of the money often featured symbols of Estonia.
Challenges and Changes
The early years of independent Estonia were challenging. The economy faced many difficulties. One big problem was inflation, which means money loses its value quickly. Prices for goods went up very fast.
Why Did Inflation Happen?
Inflation happened for several reasons. The new government needed a lot of money to rebuild the country. They printed many banknotes to pay for things. When too much money is printed, its value goes down. This made life hard for many Estonians.
Replacing the Mark
Because of the high inflation, the Estonian mark became unstable. It was difficult for people and businesses to plan for the future. To fix this, the Estonian government decided to replace the mark. In 1928, the mark was replaced by the Estonian kroon. The kroon was linked to the gold standard, which made it much more stable. This change helped Estonia's economy grow stronger.
