economic developments 1914-1929 Flashcards
what were the post war economic problems germany faced
printing more money in order to pay back treasury bills taken out in the war , they abandoned the link between paper money and gold reserves
price of basic consumer goods tripled
short supply of food
35 % of stuff was sold on the black market
coal mines in the saar were taken by the french in the treaty of versallies
what did the increase in money in circulation increase to from 1913 to 1919
2000 milion in 1913 to 45000 million in 1919
how much did national debt increase from 1913 to 1919
5000 milion in 1913
to
144000 million in 1919
how much of germany’s merchant fleet was given to the allies in treaty of versallies
90%
what was unemployment rates in 1921
1.8%
why did the econemy grow between 1920 and 1922
low unemployment encouraged american investment
by how much did prices increase between 1918-1919 and 1919-1920
1918-1919 doubled
1919-1920 quadrupled
why did german industrialists benefit from inflation
they could take short term loans from central banks to expand their businesses and then repay them with inflated currency
why did the gov benifit from inflation
it lessened their debt
why were politicians encouraged to leave the economy alone when it came to reparations
the policy of fulfilment suggested that if germany appeared unable to pay the reparations the allies would revise them
when was the first reparations paid
may 1921
when did germany fall behind in reparation payments
january 1923
when did france and belgium invade the ruhr
11 jan 1923
what was passive resistance
workers were promised that their wages would continue if they didnt work for the enemy
how did the ruhr occupation worsen germany’s economic position
paying workers and providing them with food drained government money
tax revenue was lost from production in the ruhr and workers who were unemployed
coal had to be imported
shortages pushed up prices further
international confidence in the mark collapsed