hyperinflation

Seite 1

hyperinflation

definition: government print too much money, looses value rapidly causing prices to rise in a short space of time.

why did it happen?

Weimar government was short of money after WW1

Unable to pay reparations in 1923

French troops marched into the Ruhr

They were forced to print loads of money, by November their currency became Worthless

effects of hyperinflation:

middle class: lost faith in Weimar, unable to deal with economic issues.

farmers: was food shortages as businesses didn't have enough money to purchase from farmers so they lost lots of income.

rich: usually had land protected from the worst effects.

workers: wages went much higher. however wage rises lagged behind price rises.

fixed incomes: e.g pensions became worthless.

businessmen: people able to wipe out debts. others able to take over small businesses that were going bankrupt.

rise in crimes because Germans became desperate, eg people were starving.