Economic Developments 2 Flashcards
1
Q
Who dominated the 1920 coaliton?
A
Zentrum
2
Q
What did Zentrum support economically?
A
powerful German industrialists - those who benefited from post-war inflation
3
Q
What did post-war inflation give the effect of?
A
that the government’s debt had lessened - even though reparations were not affected as the payments were paid in gold marks or goods
4
Q
What are some examples of the types of things taken by the allies as apart of reparations?
A
- almost the entire German merchant fleet
- railway wagons
- horses
- cattle
- agricultural machines
5
Q
What is hyperinflation?
A
very high monetary inflation so that prices are out of control and the currency is near collapse
6
Q
In 1924 what was the Rentenmark changed to?
A
Reichsmark
7
Q
What made the Reichsmark different?
A
backed by gold reserve (had to be maintained at 30% of the value of the Reichsmarks in circulation)
