[1] Havenstein was born in Meseritz (Międzyrzecz), Province of Posen.

He came from a family of government officials and studied law in Heidelberg and Berlin.

After graduation in 1876, Havenstein worked in the Prussian Justice service until 1887 when he began his career as a judge.

Havenstein played an important part in the hyperinflationary process in Germany since he subscribed to the widespread belief then present in Germany that the inflation was caused by the fall in the external value of the mark against foreign currencies and that the role of the Reichsbank was to print sufficient money to sustain the higher price levels.

It was Havenstein's death in November 1923 that helped to bring this policy to an end and, with it, the hyperinflation.