Chapter3-

Question 1

Financial position 1919

Answer 1

1919- serious debt, government financed the war effort by borrowing and printing more money, currency value declined, believed that they would win the war

Question 2

Impact of reparations

Answer 2

Economically- 1922, tried to negotiate a suspension of payments for 3 years but the French rejected it.
Politically- 1921, accept the terms of ARC but could cause another political crisis. Resignation of Fehrenbach’s government.

Question 3

Hyperinflation 1923

Answer 3

Jan 1923- French and Belgian forces occupied main industrial area in the Ruhr.