Hyperinflation Flashcards
1
Q
What was debt up to in 1919, compared to 1914?
A
144,400 million marks compared to 5000 million marks
2
Q
How was hyperinflation caused?
A
Government printed money to pay workers and compensate for lost tax revenues
3
Q
What did hyperinflation cause?
A
Destroyed tax savings, fixed incomes
4
Q
When did hyperinflation happen?
A
1923
5
Q
What was the short term cause of hyperinflation?
A
French occupation of the Ruhr - printing of money
6
Q
What was the medium term cause of hyperinflation?
A
Pressure to satisfy demands of reparations from 1921
7
Q
What was the long term cause of hyperinflation?
A
Military demands of WWI led to increase of financial costs; borrowed massive sums by selling war bonds to public
