the challenges of 1923 Flashcards
give a definition for the term ‘hyperinflation’
when prices rise hugely and very quickly as money loses its value
why did the german government print more money in the years 1914 - 1918?
To pay the striking workers
what did the german government do between 1918- 1922?
- it printed more money
- it asked for longer to pay the first reparations installment
what was the financial position of the german government by January 1923?
they were bankrupt
what is the Ruhr?
a german industrial area near the border with France
what percentage of Germany’s coal, iron and steel reserves were in the Ruhr?
around 80%
when did France send the troops into the Ruhr?
January 1923
give three examples of people who particularly suffered as a result of the hyperinflation
pensioners, the middle classes and people with fixed incomes
give three consequences of the invasion of the Ruhr
- the German mark became worthless
- unemployment in Germany increased
- shortages in Germany increased
give one example of how the French responded to the German government actions?
arrested many striking Germans
how did the German government respond to France’s invasion of the Ruhr?
- it called on workers in the Ruhr to strike
- it printed more money
Germany owed France ______ as part of its reperations payments
Coal
French troops confiscated goods and raw materials from the ____.
Ruhr
Give two negative effects of the Hyperinflation
- prices rising faster than wages
- savings become worthless
give two positive effects of the Hyperinflation
- Easily cleared debts
- Fixed rents for shops\ homes
