The challenges of 1923 Flashcards
What is hyperinflation?
When the price of goods increases spectacularly.
What caused hyperinflation in Germany?
The government printed more money without having more gold to back it.
What period did the Weimar government print more money to address post-war shortages?
1918 to 1922.
Which event in 1923 worsened the German economy during hyperinflation?
French troops invaded the Ruhr to take reparations payments in goods and raw materials.
What was the impact of the Ruhr occupation on German workers?
German workers went on strike.
What percentage of German coal, iron, and steel reserves were located in the Ruhr?
80%.
What did the Weimar government do in response to the Ruhr occupation?
Printed more money to pay strikers and compensate for production losses.
What happened to the German mark in November 1923?
It became worthless.
What was one negative effect of hyperinflation on the population?
Some people could not afford essentials like bread.
How did wages compare to prices during hyperinflation?
Wages rose, but not as quickly as prices.
Who suffered the most from hyperinflation?
People with fixed or monthly incomes, such as pensioners.
What happened to savings during hyperinflation?
Savings became worthless.
Which group was affected the most by the loss of savings due to hyperinflation?
The middle class.
What was the public sentiment towards the Weimar government during hyperinflation?
People blamed the Weimar government, making it more unpopular.
What positive effect did hyperinflation have on farmers?
Farmers benefited as they were paid more for food.
What financial relief did some individuals experience during hyperinflation?
Some people and businesses could pay off loans and mortgages.
Fill in the blank: Fixed rents for rooms or shops became very _______.
cheap.
What advantage did foreign visitors have during hyperinflation?
They could buy more for their money.
