Hyperinflation, impact, causes, consequences Flashcards
What was hyperinflation in Germany in 1923?
A period of extreme inflation where the value of the German mark collapsed, making money worthless.
What caused hyperinflation in Germany?
The Weimar government printed excessive money to pay reparations and support striking workers during the Ruhr Crisis (1923).
What was the Ruhr Crisis (1923)?
France and Belgium occupied the Ruhr after Germany failed to pay reparations, leading to German workers going on strike.
How did the government respond to the Ruhr Crisis?
They printed more money to pay striking workers, worsening inflation
How severe was hyperinflation?
Prices doubled every few hours—by November 1923, a loaf of bread cost 200 billion marks.
Who suffered most from hyperinflation?
People with savings, fixed incomes, and pensions lost everything as their money became worthless.
Who benefited from hyperinflation?
People in debt, including businesses and farmers, as loans became easier to repay.
What was the political impact of hyperinflation?
Many Germans lost faith in the Weimar Republic, leading to more support for extremist parties like the Nazis and Communists.
How was hyperinflation solved?
Gustav Stresemann introduced the Rentenmark, a new currency backed by land and gold, stabilizing the economy.
What were the long-term consequences of hyperinflation?
Although the economy recovered, many Germans never trusted the Weimar Republic again, fueling later political instability.
How did the Dawes Plan (1924) help after hyperinflation?
The USA loaned money to Germany, helping stabilize the economy and restructure reparations payments.
How did hyperinflation contribute to Nazi support?
It created deep resentment and economic fear, making Germans more willing to support radical solutions offered by Hitler later.
