At the same time the country was facing unrestrained inflation so that by December 1920 the Minister of Finance, Lóránt Hegedüs, drafted a financial program striving for general deflation, tax reforms, and reduced budget expenditures.
The plan failed for various reasons, including strong political opposition and the reparation payments which made it difficult to create a balanced budget for the country.
The Hungarian economy remained susceptible to escalating inflation and was largely disorganized until March 1924 when the League of Nations agreed to the Financial Reconstruction Plan.
Under this plan the League would lend Hungary a sum of about 250 million gold crowns in an attempt to help stabilize Hungarian currency and help balance the budget.
Despite having been greatly reduced in size following the war, Hungary, due to its agricultural efficiency, still exported more wheat than any other State in Europe at the time .
The revival of the economy was due largely to the controls set on inflation and a bilateral trade agreement signed with Germany in 1934.
Though the agreement did give Hungary a favorable price for sales of her wheat, the money earned remained in an account in Germany and had to be used to purchase German industrial goods.