Economic Developments 1914-1929 Flashcards
What was the understanding of those buying ‘war bonds’ to finance the war?
They would receive payment with interest after the war.
How did the government ensure a constant supply of money?
They put more money into circulation, abandoning the link between paper money and gold reserves.
The circulation of paper money increased from _____ Marks in 1913 to _____ Marks in 1919.
2000 million to 45000 million.
The National Debt grew from _____ to _____ between 1913 and 1919.
5000 million Marks to 144000 million Marks.
What was the value of the currency in 1919 compared to its pre-war value?
It was worth less than 20%.
The price of basic foodstuffs and consumer goods increased by what multiplier between 1913 and 1919?
Three times.
Germany had to supply free coal to which three countries after the war?
France, Belgium and Italy
What percentage of the German merchant fleet as surrendered to the Allies?
90%
What was the value of the reparations bill presented to Germany in 1921?
£6.6 billion
What did the German government need new capital for?
To rebuild industry, re-start trade, maintain pay for civil servants, meet the post-war demands for pensions and welfare benefits, and pay compensation to those who had lost land under he Treaty of Versailles.
What was the unemployment rate in Germany in 1921?
Compared to what value in Great Britain?
1.8% compared to nearly 17%
Prices in 1920 had reached a point of what compared to 1913?
14 times higher
Why did the Zentrum supporters benefit from inflation?
The elite industrialists could take out loans from the bank and pay them back later with Marks of lower value.
How much was it estimated that the Allies and France had received in reparations by May 1921?
2.6 billion gold marks’ worth of goods and a further 2.5 billion worth of land from the Saarland coalfields.
