Reasons For The Economic Instability Of The Weimar Republuc 1919-23 Flashcards
Reasons for hyperinflation (4)
- effects of WW1
- impact of TOV
- reparations
- Franco-Belgian occupation of the Ruhr
How did the effects WW1 help contribute to hyperinflation?
The governments high expenditure and low income from taxes during WW1
As a consequence of WW1, industrial and agricultural production ——- by ———-
Had Dramatically decreased by nov 1918
By nov 1918, national income was…
2/3 it’s pre-war level
How did the treaty of Versailles exacerbate hyperinflation
Germany lost raw material and population resources
1921 reparations set at
136 million marks
Why did chancellors Wirth and Cuno print more money?
Under pressure to find money quickly and not want raise taxes
Economic effects of printing more money
More money in circulation, the less value it has
What happened to the German mark by 1922?
It was worth 1% it’s pre-war level
Why did the French occupy the Ruhr?
1922 G govt not able to pay second instalment of reparations
How did the French decide to take their reparations payment instead of money?
In form of resources from the Ruhr and to strip G of her wealth and strength
What happened 11 January 1923
Poincaré sent 60 000 French and Belgian troops across the river Rhine to occupy the Ruhr
When did Poincaré send 60 000 troops across the river Rhine to occupy the Ruhr?
11 Jan 1923
What region was the whole G economy dependent on?
The Ruhr
How was the Ruhr essential to industrial production elsewhere?
Supplied resources essential to industrial production elsewhere
The Ruhr produced ——- nations steel
80%
The Ruhr produced ——— nation’s coal
71%
What/who did the occupying force Poincaré sent to the Ruhr include? Why?
French, Belgian and Italian engineers sent to supervise running of Ruhr factories and mines
What did the Weimar govt order after the Franco-Belgian occupation of the Ruhr ?
Weimar govt ordered an indefinite suspension of all reparations payments and ordered G workers not to cooperate but to engage in a campaign of passive resistance
A policy of passive resistance escalated into…
a trial of strength between France and GErmany
During passive resistance, clashes between French soldiers and workers resulted in
about 150 German deaths
Confrontation inevitable during passive resistance when what happened?
French soldiers attempted to round up and deport strikers
French action was criticised by which govts?
British and American
Economical impact of passive resistance
- industrial production ground to a holt in Ruhr but govt still have to pay striking workers
- govt prints more money leading to more inflation
1919 how many marks was $1 worth?
20 marks
When was $1 worth 20 marks?
1919
How much was $1 worth in marks in 1923?
20 000 million marks
When was $1 worth 20 000 million marks?
1923
When did a bank note cost more to produce than it was actually worth?
1923
What made inflation become hyperinflation?
Franco-Belgian Occupation of the Ruhr
By end ‘22 Cuno’s govt made no effort to deal w Econ probs. Why?
Thought continuing Econ probs would reinforce argument that G unable to pay reps, which would influence Allied govts to lower levels of their demands
Because of hyperinflation, G turned into a ——- economy
barter economy
Who was hit badly and unable to recover fortunes?
mid-class savers
What had a detrimental effect to old people’s health?
they lost their pensions
Prices could rise —-% per day
20-100%
What group was hit hard by industrial collapse, causing their power to decline
Trade unions
What happened to trade unions?
Hit hard by industrial collapse and power went into decline
Decline of —– and —–
law and order
what happened to those in serious debt
debts wiped out
What happened to national debt from 1918-23
quadrupled
IN what period of time did National debt quadruple?
1918-23
——- to stimulate the economy didn’t help
Erzbergers deficit financing
Political impact of hyperinflation
HItler & others quick to link crisis to ToV, democracy and Jewish financiers
Escalated into political problem
No surge of support for radical RW groups
HIte & Hinton about hyperinflation
“inflicted wounds that in the long term contributed to Weimar’s death”
Who appointed Chancellor August 1923
Stresemann
When was Stresemann appointed Chancellor?
August 1923
When was passive resistance withdrawn?
September 1923
When was the rentenmark intoduced?
November 1923
How did Stresemann help end hyperinflation (2)?
- stopped passive resistance
- intro rentenmark
