The Great Inflation

Question 1

what was total war?

Answer 1

the economy being focused on the war- economically and militarily

Question 2

economic issues faced

Answer 2

loss of resources- Saar, Alsace Lorraine and Silesia
cost of paying reparations (£6600 million 1921)
increase in national debt to 144,000 million marks by 1919 compared to 5000 million marks 1914

Question 3

causes of German inflation

Answer 3

1923 when prices soared and money values spiralled down- hyperinflation
ToV
long term- ww1- war bonds 84% borrowed for war expenditure
high demand for and shortage of consumer goods increased prices
medium term- costs of introducing social reforms and welfare state and pressure satisfy demands of reparations
short term- French occupation of Ruhr 1523- encouragement of passive resistance

Question 4

consequences of the great inflation

Answer 4

was 1923
worst was to middle class
winners those able pay debts and mortgages and loans
industrial workers- real wages and standard of living improved until 1923 and trade unions unable negotiate wage settlements
unemployment rose to 4.2 per cent 1923 but still low
decline in law and order, increase in crime, decline in morality
caused psychological damage toward WR reputation but was no the reason for its decline

Question 5

Stresemann’s 100 days

Answer 5

German currency collapsed and hyper inflation
passive resistance
left- wing political disturbances
Munich beer hall putsch

Question 6

Streseman’s achievements

Answer 6

chancellor august 1923
led broad co-alition of DVP, DDP,ZP and SPD- resolve Germany’s economic plight and tackle the problem of her weakness internationally
September 1923 called off passive resistance and promised resume reparation payments
reduce deficit and government’s expenditure- 700,000 public employees were sacked
December 1923 reichsmark replaced Rentenmark
Dawes Plan 1924- fixed payments to Germany’s ability to pay