Hyperinflation 1923

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What was the Ruhr?
Germany's main industrial area
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What did German workers in the Ruhr do?
passive resistance against the french occupiers which reduced production but meant Germany earned less and unemployment rose
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What caused hyperinflation?
invasion of the Ruhr, government called strike, workers went on strike, government had to continue to pay all of the workers on strike, couldn't pay them, had to print more money, more money printed value gets smaller
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1914-18 money
the government printed more money to pay for the first world war but didn't have more gold
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1918-22 money
weimar printed more money for the post war shortages and asked for longer to pay the first reparations instalment
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Jan 1923 Ruhr
French troops invaded the Ruhr to take reparations payments after two missed payments (defaults) . They planned to take raw materials and goods workers went on strike
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What did the government do to deal with this?
printed more money to pay strikers and make up for loss of coal, steel and iron production
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Nov 1923 (currency)
the German mark was now worthless
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Effects of hyperinflation?
prices rose dramatically people literally couldn't carry enough money to buy things with. Widespread panic
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People couldn't afford
essentials such as bread
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wages rose
not as quickly as prices
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Who suffered most?
pensioners, people with fixed monthly incomes
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What happened to savings?
became worthless
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Who did people blame?
Weimar government which made they appear even more unpopular than they were previously
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Who benefited?
people with debts and mortgages could easily now pay them off, farmers were getting more money for their produce, fixed rents for rooms and shops became very cheap
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Other cards in this set

Card 2

Front

What did German workers in the Ruhr do?

Back

passive resistance against the french occupiers which reduced production but meant Germany earned less and unemployment rose

Card 3

Front

What caused hyperinflation?

Back

Preview of the front of card 3

Card 4

Front

1914-18 money

Back

Preview of the front of card 4

Card 5

Front

1918-22 money

Back

Preview of the front of card 5
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