Hyperinflation in Germany Flashcards
1
Q
What was the economic problems during the war?
A
- Germany had used all the gold reserves in the war and kept printing more money
- June 1914, 6,300 million marks - December 1918, 33,000 million marks
- Owed 150 billion marks it borrowed during the war
2
Q
How many printing presses and firms were there, what were its effects?
A
- 150 firms, 2,000 printing presses
- Severe inflation
- Disrupted European Trade
- 20% reduction in farm production
3
Q
How did the Government attempt to help social welfare?
A
- Länder and Federal Government gave payments and pensions to those affected by the war
- 1.5 million disabled veterans in 1920
- 10% of the population receiving welfare payments and poor relief
4
Q
How would social welfare be affected at the height of the crisis in Nov 1923?
A
- The payments given would become useless due to severe inflation
- 768,000 disabled veterans left
- 420,000 war widows left
5
Q
How would the Treaty of Versailles affect the situation?
A
- France would feel that Germany was dodging payments, complained everyone was going through economic hardship
- Printing more money allowed for first few payments to be made
- Until 1924 the German paid in Kind
6
Q
What was the London Ultimatum?
A
- 1922 the allies had decided that the Germans had been behind on payments
- If payments were not made then allies would occupy the Ruhr
- The Ruhr was vital to the economy, lots of coal and industry was present there
7
Q
When and who would occupy the Ruhr?
A
- Jan 1923
- French and Belgium troops
8
Q
How would the Germans react to the occupation of the Ruhr?
A
- Payments were cut to Belgium and France
- Workers were told to passively resist, not accept orders and strike
- Government paid the workers who passively resisted - added to hyperinflation
- Beer Hall Putsch was heavily in protest to the Ruhr and showed right wing agitation
9
Q
Name some key effects of hyperinflation?
A
- 750,000 govt. employees lost their jobs
- Some people had their debts wiped (positive)
- Middle class suffered - savings and pensions worthless
- Poor’s wages were heavily affected
- Black market established, mostly accessible to the rich
- Barter was used instead of money
10
Q
What was the increase in Newspaper prices?
A
May 1922 - 1 Mark
Sept 1923 - 100,000 marks
Nov 1923 - 700 billion marks
11
Q
When was a Governmental change made, what did they grant?
A
August 1923 Government collapsed
- Replaced by Gustav Stresemann of the DVP as chancellor (100 days, then 6 years as foreign minister)
- 10th August emergency decree, allowed for decrees to be made without Reichstag meetings
