Hyper-inflation Flashcards
What started off the economic crisis in Weimar Germany (not ToV)?
When Germany missed a reparations payment in 1922
What was the period 1924-29 referred to as?
The ‘Golden Years’
What did missing a reparations payment directly spark off?
Invasion of the Ruhr by French and Belgian troops to take what was owed to them in the form of raw materials and goods
What was the Weimar Gov.s response to the invasion in the Ruhr?
They told the workers not to co-operate and go on strike using PASSIVE RESISTANCE
What was the main flaw in the workers’ strike in the Ruhr?
The German gov. still paid the workers’ families and slowly ran out of money
What was the Weimar gov.’s solution to running out of money?
To print more
What did printing more money lead to?
Reduced value of money, so shops and suppliers had to put up prices, so people had to be paid more
What did printing more money eventually spiral into?
Hyper-inflation
Name 6 negative impacts of hyper-inflation
- Food items such as eggs and bread became UNAFFORDABLE
- Saving reduced in value and became worthless
- People had died during crisis in Ruhr
- People with FIXED INCOMES suffered
- Even increases some workers had could not match the rising prices
- Loss of confidence in Weimar Republic (powerless after hyper-inflation)
What did the loss of confidence in the Weimar gov. lead people to do?
Turn to EXTREMIST parties
What were 2 positive impacts of hyper-inflation?
- Loans easier to pay off as worth less than before
2. Some business men able to pay off loans used to set up their companies
Who tried and failed to use this economic chaos to seize power?
The Nazis (but also other extremist groups. Think of the uprisings)
When did hyper-inflation kick-off?
1923
when all the stuff on this deck happened bar the missed reparations payment
