Hyperinflation

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  • Hyperinflation 1923
    • What happened?
      • The Germans couldn't pay the reparations.
      • The German government didn't have enough money to pay for the costs of the passive resistance.
    • Initial government reaction:
      • They printed more money (marks)
        • Value of money went down.
        • Prices increased significantly.
    • Impact of Germany:
      • People who had money before were affected significantly.
      • Savings became almost completely useless
      • People traded goods instead of using money since it was higher in value.
      • Currencies worth was unstable.
    • Stresemann's reaction and Impact:
      • Scrapped old money
      • Introduced new temporary currency
      • Germany now had a more stable currency to repair the issues the old one had caused.

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