factors that led to hyperinflation in 1923

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  • factors that led to the hyperinflation of 1923
    • social welfare
      • government provided loans for those leaving the army until they could find work.
        • variety of social welfare programmes for different groups
          • provided by federal government and lander
            • help for veterans lump sum payments/ pensions
              • all these payments had to be made by a government federal/ regional government level
    • debt and reparations
      • during ww1 the government had borrowed heavily, resulted in a national debt of 150 billion marks.
        • policy of reparations further added to the debt as a result of the treaty of versailles
          • government unable to make these payments
            • carried on borrowing money/ printing more money
              • contributed to hyperinflation made currency worthless
    • The French occupation of the Ruhr
      • french and belguim forces marched into the ruhr in order to take war reparations by force.
        • ruhr rich industrial area of germany
          • workers urgued by weimar government to use passive resistance - sabotage
            • government printed even more money to pay the striking workers
              • only ended after negotations with the french
    • Hyperinflation
      • crisis in the ruhr led to hyperinflation
        • prices spiralled out of control
          • some businesses used 'emergency money'
            • led to a black market

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