hyperinflation in germany 1923 1 Flashcards
by 1923, germany couldn’t meet one of the goals of the TOV, which one
couldn’t pay reparations
what did france and belgium do in response to germany not being able to pay reparations
occupied the ruhr to take germanys resources instead
what was the ruhr
richest, industrial part of germany
what was the effect of the invasion of the ruhr and how did germany try solve it
german industry was destroyed, and so germany tried to print more money but it led to hyperinflation
when was the invasion of the ruhr
1923
who were the hardest hit from hyperinflation
middle class
upper class had the _____ time
easiest
working class had the ____ time
hardest
why did working class suffer
they had no assets and nothing to sell ( only savings which were rendered worthless immediately)
why didn’t upper class suffer
they had non cash assets like land and property, land and bussinesses which wouldn’t be rendered worthless
consequences of hyperinflation
germany’s currency became worthless so nobody wanted to trade with them and shortages of food and goods got worse
bank savings became worthless
why was germany bankrupt at this point
- spent all their money on ww1
- due to the TOV- all money earned went to allied countries
- no more gold reserves
ruhr contained how much of germanys reserves
80%
why did the french occupy the ruhr
as a form of punishment
how did the germans react to the invasion of the ruhr
the workers went on paid strike as the german government didn’t want any violence but it didn’t work very well
effect of invasion of ruhr on working germans
huge unemployment
did anyone benefit from the hyperinflation
foreign visitors which could buy very cheap holidays and huge amounts of thigns as they had foreign money
effects of hyperinflation (5)
theft increased
workers were paid twice a day to keep up with the amount of money
people carried money in wheelbarrows
shop owners would refuse money and trade instead
money was used as fuel for fire instead to keep you warm
3 plans to help
currency reform
dawes plan
young plan
how was hyperinflation solved
currency reform
what was the currency reform
when germany introduced a new currency called the Rentenmark, and they controlled the amount of money they printed. It replaced the worthless papermarks
did the currency reform help get the french troops out of the ruhr
it made the dawes plan possible but it wasn’t in itself the result of the success of the french leaving
- only a factor not a permanent solution
did the currency reform resolve the problem of unnaffordable reparation payments and why
not by. itself, it only meant that the new of the new marks was higher but without economic development it wouldn’t solve the problem
did the currency reform solve hyperinflation crisis
yes as money wasn’t worthless anymore
did the currency reform resolve the problem of the need fro a permanent solution , why
no because even though it raised the value of the money they still needed to improve their economy otherwise nothing would change
did the currency reform have any weaknesses
no it was a good plan/move
when was the currency reform
1923-24
