20 February-Austria

Austria is a central European country with a population of almost 9 million. It has a high standard of living and is regarded as one of the richest countries in the world. Austria declared itself bankrupt in 1811.

Austria was part of the Holy Roman Empire until 1806 when it became the Austrian Empire. In the following years the establishment of the Austrian Empire the country became involved in fighting expensive wars. One of the most expensive was the war with Napoleon, the Emperor of France.

To finance its wars Austria raised taxes and borrowed from its allies. Paper money was issued in 1762. The costly wars led Austria to increase the money supply. This led to inflation which gave rise to a dramatic fall in the value of paper money by 1811.

Austria, having fought expensive wars for many years, declared itself bankrupt in the year 1811 On This Day.

Austrian Flag

Austrian double eagle

Austria

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