Hyperinflation crisis of 1923

Question 1

What was the hyperinflation crisis ?

Answer 1

Money lost its meaning as prices rose to unimaginable levels due to printing presses working constantly to keep banks supplied with worthless paper money ?

Question 2

impacts of hyperinflation ?

Answer 2

rising prices for food had serious impacts.Food began to run short as speculators hoarded supplies, in anticipation of rising prices.This led to a breakdown of law and order.There were food riots as crowds looted shops and there was a large increase in the number of theft convictions.

Question 3

Why did the German government decide to print money ?

Answer 3

When a country owes money they have two options either to increase taxes or print more money.The Weimar government thought due to their unpopularity due to multiple things such as the war guilt clause , treaty of versailles , stab in the back there and the November criminals and their black of legitimacy that this would make them even less popular and would lead to serious problems.As a result, they decided to print more money, heavily affecting the currency.

Question 4

How big was the production of money in Germany ?

Answer 4

Around 200 factories worked full time to produce banknotes.They put it in the economy - causing its value to go down

Question 5

figures that show the huge hyperinflation problem

Answer 5

1919: Loaf of bread cost 1 mark
1923 : Loaf of bread cost 100 billion marks

Question 6

what caused the hyperinflation crisis of 1923 ?

Answer 6

Economic effect of occupation was severe.Combined cost of all amounted to twice the annual reparation.Caused hyperinflation.