Economic effects of the war Flashcards
Why was the war so costly for Germany?
Germany had borrowed a lot of money which they could no longer repay
How did the 1923 hyperinflation occur?
Germany continued to print of money to pay of the allies
How did Erzberger attempt to stop the economic impacts of the war?
Reduce taxation and stimulate spending
Why did the French occupy the Ruhr?
The French believed Germany was avoiding paying her reparations.
What was passive resistance?
Germany workers refusing to cooperate with or work with the opposing force
What actions did Stresseman take to restore the economy
1) Call of passive restiance
2) Promise to continue paying reparations
3) New currency - Rentenmark
4) Cut government expenditure and firing employees
What was the impact of Stressemans policies?
He managed to stabilise the economy
How did businessmen profit from the collapse of the mark?
By exporting goods to foreign countries or paying off debts and buying up property
Outline the Dawes plan
US would loan significant amounts to Germany so that she can pay France her reparations.
What was the aim of the Dawes Plan?
To allow money to flow to Europe and France to rebuild thus allowing France to pay reparations to America.
How did the Dawes Plan affect Germany?
The Dawes plan led to a period of financial stability in Weimar Germany as the economy recovered.
What was the Golden Twenties?
It was a cultural renaissance in German cinema art and music, it was an Americanisation of German popular society
Great Depression
An economic crisis after a stock market crash in 1929
Why was Germany heavily affected?
Because it was dependent on loans from America
How did this affect living standards?
Gap between the rich and the poor grew and people could not afford neither rent so were evicted
They began living in tents on the street
