Due to mismangement of finances, war expenses, accumilating debts, reparation payments and the invasion of the Ruhr the German gov+ started to print more and more Marks. High levels of debt had been allowed to continue afte 1918.
This meant too much was in circulation, thus prices soared and the value of momey spiralled down. Money was not worth the paper it was written on. A majority of the public suffered especailly those wth savings (normally middle class)
Reparations payments had to be made in hard currency (with minor inflation e.g. Dollar) so gov+ printed larger quanities of Marks and sell them to obtain the stronger currencies of other countries. Serious consequences. Mark went into sharp declne and inflation soared.
Gov+ was reluctant to balance budget using taxation in fear of political and social unrest, instead opting for deficit financing (reducing tax burden on people to stimulate spending thus economy)
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