Hyperinflation and Ruhr Flashcards
When did Hyperinflation occur
1923
What event caused hyperinflation and how
The Ruhr invasion
France and Belgium (6,000 soldiers) invaded as Germany failed to pay reparations. Workers went on strike
The government printed more money to cover cost of passive resistance
They still had huge debts from the Treaty of Versailles
Who benefitted from hyperinflation
The Nazi party and communists
Big business owners (could buy small businesses)
People in debt (debts wiped out)
Young people (told to spend money quickly so had good time,culture!)
Who was not benefitted by Hyperinflation
How did they see the Nazi party
The Government! There was also mass unemployment so benfits were given to the unemployed
Small businesses couldn’t cope
Middle class people and pensioners saw savings become worthless
Nazi party were seen as saviours
What was done to help Germany recover from hyperinflation
Oct 1923 government destroys old currency and replaces it with the temporary Rentenmark and limits circulation
Permanent Reichmark introduced
Stresemann calls for passive resistance in the Ruhr
1924 Dawes plan, loaned money from US
What was the result in Stresemann calling of the resistance in the Ruhr regarding German faith in Weimar
Stresemann 1923
The economy began to recover and France withdrew but the people criticised the government for giving in to France
