chapter three Flashcards
how did Britain deal with war debt after ww1 in comparison to Germany
britian enforced higher taxes and government borrowing Germany instead increased borrowing and printed more money
after war what happened to debt and the value of money
debt increased
value of money decreased
how is reparations described
as a burden
in 1919 how high was the debt facd by the Weimar Republic from the war
1.44 billion marks
what two options did Germany have to deal with this , and what were the negatives
to rise taxes
alienate support for the new Weimar Republic
reduce government spending
extended welfare benefits = larger expenditure and reduced military spending
although debt was high what had disappeared by 1921
unemployment
as inflation went unchecked prices rose
give related statistics
1918-19 doubled
1919-20 quadrupled
14x higher than prices in 1913
the government allowed inflation to go unchecked due to …
the 1920 coalition led by fehrenbach was dominated by the centre party and supported by powerful German industrialists
- they benefited by taking short term loans out for their business and repaying them at a later date hen inflation had worsened
how can inflation be seen as beneficial to some and the downside
1921 unemployment in Germany wa 1.8% compared to nearly 17% in gb
encouraged america to invest
as it went unchecked for so long it spiralled out of control
after t of v included the requirement of reparations how much did the reparations commitee set them at
132 billion gold marks
or 6.6 billion in annual instalments
when were the reparations presented too Germany
1921
what did the reparations come with
an ultimatum to accept within 6 days
what did this cause in Germany
a political crisis
how did fehrenbach and his cabinet react
resigned due to believing reparations were too high in protest
who replaced fehrenbach
Joseph wirth
what did Jospeh Wirth do
signed the treaty of Versailles and followed a policy of fulfilment
in January 1922 what did Germany request
that the January and February payments were postponed
in July 1922 what did Germany request
further postponement of repayments for the rest of the year
in November 1922 what did Germany request
a loan of 500 million gold marks and release of obligations for 3-4 years
how did the French react to the novemeber 1922 requests
suspicious and saw it as an excuse , setting for the 1923 clash between France and Germany
how did reparations strain the economy further
huge debt already made paying reps hard
germanys gold reserve were inadequate for the amount needed for reps
other reps to be paid in coal but lost large amount of coal reserves in t of v
considered paying in manufactured goods but allies deemed this as a risk to their business
how did the allies help worsen the German economy
allies hampered germanys export trade by confiscating merchant fleets and imposing high tariffs on improved goods
led to Germany printing more money
what did John Maynard Keynes say about reparations
critical of 6.6 billion requested and believed 2 billion was germanys maximum figure to be able to pay
on the contary what did peukert say in 1991 about the reparations
it was manageable for Germany as it only amounted to 2% of its gross national produce and the effects of reparations had been exaggerated and allowed foreign policy to spiral as it supported foreign policy affairs