Hyperinflation Crisis of 1923 Flashcards
When prices go up.
Inflation
When the government spends more money than it gets from taxes.
Deficit Financing
The heavily industrialsied area of West Germany that generated 85% of German coal and had many factories.
The Ruhr
When people lose faith in currency and prices spiral upwards.
Hyperinflation
‘Middle rank’; small farmers, small shopkeepers, artisans and people without steady sources of income.
Mittelstand
Someone who owns a large factory/factories.
Industrialist
US president’s plans for the Treaty which were more lenient.
Wilson’s 14 Points
Germany funded WW1 through borrowing and printing.
1914-1918
New Weimar Government inherit debt of 1.44 billion marks but increase spending.
1919
Allies set total reparations bill at £6.6 billion.
1921
Germany requests a loan of 500m gold marks and 3 years without reparations.
November 1922
Germany fail to keep up their reparations payments to the Allies.
December 1922
French and Belgian soldiers seize the Ruhr land.
January 1923
Hyperinflation reaches its peak. A kilo of Rye bread costs 233 billion marks.
November 1923
The working day is limited to a maximum of 8 hours.
1919
State health insurance is extended to include wives, daughters and the disabled.
1919
The government gives aid to veterans who are unable to work because of injury.
1919
National Youth Welfare Act - all children have the right to an education and protection.
1922
Included the people who had the means and the guile to speculate and manipulate the situation to their advantage. Includes black-marketeers, those who had debts, mortgages, and loans, enterprising business people.
Winners of the hyperinflation crisis
Those relying on savings, investments, fixed income or welfare support lost out. These included pensioners, landlords, unskilled workers, small business owners, the sick, and children suffering from malnutrition.
Losers of the hyperinflation crisis
