Hyper Inflation and Invasion of the Ruhr Flashcards
When did hyperinflation and the invasion happen?
1923
Who invaded the Ruhr?
The French
Why did they invade the Ruhr?
The Germans failed to pay the reparations
What did the French confiscate?
raw materials and manufactured goods
What did the Weimar Republic ask the German people to do?
Not to fight but to go on a strike
Why did the strike make things worse?
It weakened the economy because many factories had to shut down during the strike
What did the invasion trigger?
Hyperinflation
How did hyperinflation occur?
Germany’s economy was so damaged that the government decided to print off more money
What happened to the mark?
It became worthless and many people lost all of their savings
Why was hyperinflation not easy to solve?
As the prices rose, the more money had to be printed, making the prices even higher
Who benefited from hyperinflation?
Those in debt could easily pay it off and farmers could increase the prices of goods
