Invasion of the Ruhr and Hyperinflation Flashcards
What is the Ruhr?
Germany’s main industrial area
Why did France invade the Ruhr?
Germany had missed her last two reparations payments. France argued that she had the money but was unwilling to pay, meanwhile Germany insisted that they din’t have the money.
France then decided to instead invade the Ruhr and take what was owed in the form of raw good e.g coal
How did Germany react to the invasion?
Ebert told the German workers to go on strike (also called a ‘passive resistance’) in return of payment.
However France and Belgium sent their own workers into the Ruhr to take their place.
What was the cause of hyperinflation?
After the invasion of the Ruhr, the German government decided to print more money to be able to pay France better.
However this meant that the value of the money dropped massively and the price of goods increased.
Who was affected the most by hyperinflation?
People with savings (middle class)
People with a fixed income
Pensioners
Small businesses
Who benefitted from hyperinflation?
People with debts
Farmers
How was hyperinflation ended?
Stresemann introduced the Rentenmark in 1924. This new currency was not affected by hyperinflation.
