Ghost money

On June 15, 1949, an announcement appeared in newspapers (below) and the headlines read: 

Taiwan reforms monetary system

New notes begin circulation today

New TWD (NT$) backed by a reserve of 800,000 ounces of gold

Exchange rate ties to five NT$ to 1 US$

40,000 Old TWD exchange for 1 NT$

Compensation for public servants and teachers shall be reasonably adjusted

Much has already been written with regard to the loss of livelihood and not the least, retirement funds for the people of Taiwan. Unimaginable instant poverty for many families in fact.

Here, we'll simply look at a collection of bank notes from different periods in Taiwan history (source: here):

Bank of Taiwan one yen note, backed by gold - Japanese Colonial era

Bank of Taiwan one yuan, 1946. One to one exchange with the pre-war yen

Bank of Taiwan Old TWD 10,000 issued in 1949 when hyperinflation set in

Bank of Taiwan NT$ 50 cents 1949 - good for Old TWD 20,000

Since only those who spoke Chinese could be employed as public servants and teachers, which most Taiwanese did not qualify, the former therefore had received a windfall ("reasonably adjusted") when paid in NT$.

Before this monetary collapse, a house in good shape in Tamsui sold for Old TW$1,000 to 2,000. Overnight, this money was good for a set of 油條 (Chinese crullers). Only those who hoarded solid gold and the like or invested in houses or land escaped the disaster. Land owners, however, would soon lose their holdings in the Land Reforms of the 1950s. To this day, older Taiwanese still hold on to their gold. Lessons learned.