Hyperinflation

Question 1

What were the causes of hyperinflation?

Answer 1

• prices had been rising during WW1 and continued to do so, government was printing money to help pay for the cost
• panic set in due to reparations, expected to pay 132 billion gold marks in yearly instalments for next 66 years, paid in 1921 but not 1922
• invasion of the Ruhr

Question 2

What happened for the invasion of the Ruhr to happen?

Answer 2

• December 1922, German government argued they could not afford to pay in 1923
• French thought Germans were exaggerating
• January 1923, 60000 French and Belgian soldiers invaded Ruhr which was the main industrial area at the time
• took control of every factory, mine and railway

Question 3

What did the Germans do in retaliation to the invasion?

Answer 3

• ordered the workers in Ruhr to go on strike (passive resistance)
• French responded by sending French workers
• running short on money because of the strike yet still promised to pay workers
• over 100 Germans were shot when refused to work, more than 100,000 workers removed

Question 4

What did the German government do to pay back the workers?

Answer 4

• printed large amounts of money
• caused shops to put prices up which meant more money had to be printed

Question 5

What were the negative effects of the printing of more money?

Answer 5

• middle class with savings value dropped
• those with pensions or on a salary monthly income couldn’t buy a cup of coffee
• small businesses collapsed as normal trade became impossible due to daily prices rising
• rise in crime and homelessness

Question 6

What were the positive effects of printing more money?

Answer 6

• businessmen who had borrowed money to invest could pay off debts
• land and property owners were less affected as wealth was not in cash

Question 7

What were the long term effects?

Answer 7

• middle classes with businesses and savings destroyed
• damage done to the reputation of the Weimar Republic