Shortages of supplies meant that the cost of living increased.
The government needed money to pay their debts (£2200 million of war loans), but due to unemployment and failing factories, revenue from taxes decreased.
They began to print money.
So much money was printed that the currency became worthless.
In 1921 a loaf of bread costed 1 mark, by 1923, the same loaf of bread costed 100 000 million marks.
Some farmers and businesses profited.
Most people suffered, particularly those with savings and pensions in the bank.
Some people were paid twice a day so that they could buy supplies before the price increased again.
Comments
No comments have yet been made