The Problems facing the Weimar Republic 1923
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- Created on: 12-06-16 14:01
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- The Problems facing the Weimar Republic 1923
- 1921
- First installation of reparation payments (2bn gold marks)
- January 1923
- Germany announced that it couldn't pay anymore
- A few days later, French and Belgian troops marched in the Ruhr, an industrial and coal rich region in NW Germany and declared they would take what was owed to them by force
- Jan '23 occupation of the Ruhr - Strikes by German workers - Gov. supported workers - Printed money in order to pay strikers - increased spending = more demand in shops - raised prices - more money printed - increased prices etc - Nov '23 HYPERINFLATION
- Hyperinflation: all prices in an economy rise at an extremely fast rate which rapidly erodes the real value of the currency, causing the population to minimise their holding of money
- Losers: people with savings in the bank (they became worthless), elderly people (fixed pensions), small businesses (couldn't keep up with changing prices)
- Winners: People who had taken out loans (they could pay back their debt with one banknote)
- 1921
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