Hyperinflation
- Created by: CharlotteAmuwu
- Created on: 26-04-19 10:26
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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.
- They printed more money (marks)
- 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.
- What happened?
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