Hyperinflation

Germany 1919-1945
Hyper-inflation…read more

How did it start?
Germany struggled to keep up with the reparation
payments to the Allies.
In 1922 Germany announced that it could not
afford to pay reparations for the next three years.
France did not believe this and was determined to
make Germany pay.
In 1923, 60,000 French and Belgian troops
marched into the Ruhr, an important industrial
area of Germany. This was called the `Invasion of
the Ruhr'.
They seized control of all mines, factories and
railways.
They took supplies from shops and set up
machine-gun posts in the streets.…read more

How did it start?
The German government told workers not to
co-operate with the French.
The workers who went on strike received
money from the German government to
support their families.
To make matters worse, no money was coming
in from the Ruhr, one of Germany's main
industrial areas.…read more

Hyperinflation
These are the steps that led to hyperinflation...…read more

The government The government prints more
becomes very money to pay workers and
short of to pay its debts
money
People lose The more
confidence in money
the German printed, the
mark less it is
Prices rise at an incredible rate.worth
In Jan. 1919, one US dollar is worth nearly 9
marks.
By Nov. 1923, one dollar is worth 200 billion
marks.
At one stage an egg costs 80 billion marks and
a glass of beer 150 million marks.…read more

How did hyper-inflation affect
the German people?
Winners Losers
People in debt found it · People with savings
easier to pay off their were the biggest
loans losers. The value of
what they had saved
Businessmen found it fell drastically.
easier to pay back · Pensioners were badly
money they had hit. In 1919, 6000
borrowed to build up marks was a small
fortune. By 1923 it
their businesses. would not even buy a
stamp for a letter!
· Workers found that
wage increases did not
keep up with the
rising prices.…read more