Hyperinflation

Question 1

Hyperinflation
Background Fact 1

Answer 1

In 1923, the German government spent more money than what they earned, putting them in a budget deficit and leading them to print more money to counteract this.

Question 2

Hyperinflation
Background Fact 2

Answer 2

Soon, money quickly became worthless and businesses rose the prices of everyday products, causing an increase in poverty.

Question 3

Hyperinflation
France and Belgium’s invasion - Ruhr

Answer 3

• In January 1923, the French and Belgian forces invaded the Ruhr, Germany’s industrial zone.

✓ This was important as it caused the German population harm and the government did little to stop the conflict, still printing more money.

Question 4

Hyperinflation
France and Belgium’s invasion - Industries and railways

Answer 4

• The forces took control of their industries and railways and take their belongings as payment for reparations, which Germany could not afford to pay off.

✓ This was important as it caused a loss in equipment and loss of pride from the German population

x However, Germans were encouraged to strike against them

Question 5

Hyperinflation
Budget Deficit - war costs

Answer 5

• By 1923, the Weimar Government faced numerous economic problems such as its budget deficit, which was partly due to war costs which they could not afford to pay off.

✓ This caused the Reichsbank to print more money in hopes of solving this issue, however this soon began the issue of inflation.

Question 6

Hyperinflation
Budget Deficit -

Answer 6

• This caused the Reichsbank to print more money in hopes of solving this issue, however this soon began the issue of inflation.

✓ Economy collapsed and with it the respect and trust for the government.

x procedures were put in place to help the issue of hyperinflation such as food stamps.

Question 7

Hyperinflation
Historians - Psychological scar

Answer 7

Detlev Peukert - The dramatic breakdown in 1923 left a psychological scar that undermined faith in democracy.

Question 8

Hyperinflation
Historians - Desperate condition

Answer 8

Hans Mommsen - The desperate conditions that had been created by the hyperinflation crisis encouraged a process of extreme political polarisation.