Interwar Period Quiz Flashcards
Condition of Germany post WW1
Almost everyone was poor
Currency devalued, wheelbarrows of money
Everything was EXTREMELY expensive
Political disruption from communists and other political parties
Constant strikes, no work, no homes, no money
Low supply of everything
Causes of hyperinflation
Germany stopped Allied repayment
French and Belgian troops invaded the Ruhr valley and took over German iron and steel factories, coal mines, and railways
Germans who didn’t cooperate were jailed and denied food
The Germans were ordered to go on strike by their government
The German government started to print more to makeup for the loss of revenue
Effects of hyperinflation
People were paid by the hour
People paid were wheelbarrows full of money
Restaurants did not print prices on their menus, The price of the item would have changed by the order came
Bartering was common
Pensions became worthless
Individuals savings were lost overnight
Mass homelessness
How did hyperinflation end?
new chancellor Gustav Stresemann
Issues new currency
Order the Ruhr workers to stop striking
Dawes Plan
American Government loaned Germany 200 millions dollars
Set a reasonable for reparations on repayments
economy stabilized and Berlin experienced a Golden Age
