Germany - topic 1 - Hyperinflation Flashcards
1
Q
why did hyperinflation start
A
because the French had occupyed the Ruhr and no German workers were working there which meant that no German money was coming into the economy because the German government kept on paying the workers who were on passive strike.
2
Q
who benefitted from hyperinflation
A
- rich businessmen because they were able to buy and take control of smaller businesses and earn lots of money
- people who were in debt or had taken out loans because now the money was worthless so they didn’t have to pay it back
3
Q
who didn’t benefit from hyperinflation
A
- the middle class because they’re smaller businesses collapsed and never recovered
- pensioners because whatever money they had saved, was now worthless so they had nothing
- workers because they were already poor enough
4
Q
who stopped hyperinflation
A
Gustav Streseman
5
Q
what did Streseman do ?
A
He told the workers to go back to work which got the French out of the Ruhr so the German economy got some money going back in it. he then introduced the Rentenmark which completely scrapped how inflated the old mark was.
