Economy Flashcards
What was the effect of hyper-inflation on businessmen?
There wasn’t that much of an effect on businessmen, as their products were still worth a certain value which changed with the value of money.
What is hyper-inflation?
When there is so much materialistic money in circulation, prices shoot up so money loses its value quickly.
What was the effect of hyper-inflation on pensioners?
They were hit hard: money that they had accumulated their whole life was worth next to nothing.
What was the effect of hyper-inflation on Debtors?
Money was so easy to get that debts were paid for instantly; they lost lots.
What was the effect of hyper-inflation on workers?
Workers had many pay rises (sometimes exceeding 2 a week!) so they had enough for a living - wages were brought home in wheelbarrows.
How was hyper-inflation stopped?
America loaned Germany money and Stresseman introduced the Rentonmark.
What was agreed in the Dawes plan?
- French and Belgian troops were removed from the Ruhr
- Reparation payments were restructured to make them more ‘German friendly’
- The restructuring of Weimar’s national bank, the Reichsbank, which would be supervised by the allies.
What was the Dawes plan?
A plan agreed by the Allies and America to get Germany’s economy back on track, as to prevent communism spreading from Russia.
What was the Young Plan?
The Young Plan was introduced in an attempt to support Germany through her financial problems.
What was agreed in the Young Plan?
- Only 1/3 of the reparations had to be paid each year; only more needed to be payed if it would not harm Germany’s economy
- The total amount of reparations to be payed was reduced
