germany economics Flashcards
what was the economic situation after ww1 ?
germany was in debt of over 150 billion marks
all gold reserves was spent on the war effort
150 printing firms printing more money -inflation
crisis of the ruhr-1922-23 100,000 marks to 700 billion marks - hyperinflation
due to hyperinflation what market did people turn to
people turned to the black market but this could not supply everyone only as the prices were high so only the rich could afford products
what did towns, regions and business begin to issue ?
‘notgeld’ emergancy money to combat regional inflation
after ww1 what slowed down and what was the effect of this ?
after the war ended the war production slowed down therefore unemployment went up due to returning soldiers , and the economy slowed down
june 1923 how many marks were in circulation?
17,393,000
how was the currency stabilised?
1923 rentenmark was introduced government also used emergancy decress to control prices,rent and wages
state 2 foreign policies
locarno pact 1925- redrew borders
dawes plan 1924- reduced reparations
was foreign policy vital?
to an extent yes, foreign policy helped provide financial stability for the economy and reduced some debt and made germany an agreeable foreign power
what was the negative impact of foreign policy?
Germany became dependant on American subsidies the economy was built of foreign policy when the great depression hit these were all retracted
how did businesses recover?
businesses formed cartels to control set prices and stabilise the economy.
factories were built with ,ass assembly lines .
example of business recovery
IG Farben chemical company set up in 1925 produce chemicals,fertiliser and dynamite
by 1925 chemical industry was producing 1/3 more than in 1913
how did trade recover?
germnays e=acceptance into the league of nations
Nazi foreign policy
Nazi foreign policy
What is the 4 year plan
