1.6. Hyperinflation

Question 1

What were the 3 types of inflation in Germany?

Answer 1

War inflation
Demobilisation inflation
Hyperinflation

Question 2

How did Germany pay for the war?

Answer 2

Through increased borrowing
Through printing more money
Through war bonds

Question 3

What did increased borrowing and printing mean for Germany’s economy?

Answer 3

Increased debt and fall in the value of the currency

Question 4

What was government debt by 1919?

Answer 4

1.44 billion marks

Question 5

What proportion of war spending was borrowed by 1918?

Answer 5

84%

Question 6

What happened in 1919 that lead to Germany’s economic hardships?

Answer 6

The Treaty of Versailles

Question 7

Why did the post war Weimar government not promote austerity?

Answer 7

Because it was politically unpopular on both the left and right

Question 8

What did the Weimar government do to try and help industry?

Answer 8

Subsidise it

Question 9

What had to be paid out to all the demobilised soldiers?

Answer 9

Compensation and benefits

Question 10

When did the Reparations Committee decide how much Reparations Germany should pay?

Answer 10

1921

Question 11

What did the Fehrenbach government do in protest at the perceived harshness of reparations?

Answer 11

Resigned

Question 12

What was the price of 1KG bread in 1913, June 1923 and November 1923?

Answer 12

0.29 marks
1,200 marks
428 billion marks

Question 13

Between 1918 and 1919, what happened to prices?

Answer 13

Doubled

Question 14

Between 1913 and 1920, what happened to prices?

Answer 14

Rose or be 13 times higher

Question 15

What triggered hyperinflation to kick in?

Answer 15

French invasion of the Ruhr

Question 16

Why did the French invade the Ruhr?

Answer 16

Because they felt that Germany’s requests for delays to reparations were merely delaying tactics

Question 17

When did France and Belgium invade the Ruhr?

Answer 17

January 1923

Question 18

How many Germans were moved out of the Ruhr and why?

Answer 18

150,000 as they were not useful

Question 19

What policy did Chancellor Cuno propogate?

Answer 19

Passive resistance

Question 20

How many soldiers invaded the Ruhr?

Answer 20

60,000

Question 21

What did paramilitary troops do in the Ruhr?

Answer 21

Sabotaged French invasion in secret coordination with the German army

Question 22

How many Germans were shot during the occupation of the Ruhr?

Answer 22

132

Question 23

By May, how much had output fallen by in the Ruhr?

Answer 23

1/5th

Question 24

What did the German government do to support Ruhr workers on strike?

Answer 24

Paid their wages

Question 25

How did the invasion of the Ruhr contribute towards hyperinflation?

Answer 25

Reduced taxation Shortage of goods increased prices Had to import coal

Question 26

Give 3 positive impacts of hyperinflation

Answer 26

Mortgages could be paid Businesses could pay of debts and take on new ones Exports attractive due to favourable exchange rate

Question 27

Give 3 negative impacts of hyperinflation

Answer 27

Increase in disease through malnutrition ( e.g. oedema from watery diet) War bonds and savings valueless Renters couldn't pay Increase in crime

Question 28

What was the printing of money largely for?

Answer 28

To pay for social welfare

Question 29

What was the most pertinent psychological impact of hyperinflation?

Answer 29

People were worried that they were being dragged down the class ladder

Question 30

What happened to unemployment during hyperinflation?

Answer 30

Stayed low ( peaked at 4%)

Question 31

Why was inflation good for government around 1920

Answer 31

They could pay off debts

Question 32

What did Stresseman do to end hyperinflation?

Answer 32

Ended passive resistance

Question 33

What did Schact do to end hyperinflation?

Answer 33

Introduced to rentenmark as a temporary currency and linked it to land value, a more stable asset.

Question 34

How much was government debt reduced by from 1918 to 1923?

Answer 34

1.44 billion marks to 15 pfennings

Question 35

In the words of Stresseman, what happened to the middle class during hyperinflation?

Answer 35

They were "proletarianised"