French invasion of the Ruhr and hyperinflation Flashcards
How did the Treaty of Versailles make Germany’s economic situation even worse?
It deprived Germany of wealth-earning areas, such as the coalfields in Silesia, and made the German government pay reparations
When did Germany miss a reparations payment for the first time?
December 1922
How did the French respond to the Germans missing a reparations payment?
In January 1923, they sent troops into the German industrial area of the Ruhr
What did French troops do in the Ruhr in January 1923?
Confiscated raw materials, manufactured goods and industrial machinery
How did the Weimar government urge workers to respond to the French invasion of the Ruhr?
Passive resistance: they should go on strike
How did the French respond to the passive resistance of German workers?
Arrested those who obstructed them and brought in their own workers to produce coal to meet the missing payment
Why was the Ruhr economically important to Germany?
It contained around 80% of German coal, iron and steel reserves
What happened to the price of goods as a result of the French invasion of the Ruhr?
Went up (inflation)
How did the Weimar government respond to the challenges of inflation?
They printed more money
How many paper mills and printing firms were in use to print more money by 1923?
300 paper mills, 2,000 printing firms
What was the short-term benefit of printing more money?
Made it easier for the government to pay reparations
What was the long-term problem of the Weimar government printing more money?
It meant that inflation got even worse and prices rose even higher
How much did the following cost by November 1923:
An egg
A pint of beer
Egg: 80 million marks
Pint of beer: 150 million marks
What did people begin to use instead of money as currency?
Coal or sausages
How much could prices rise by in a single day?
Between 20 and 100 per cent
