Hyperinflation In Germany - created from Mind Map

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Reparations

Germany managed to pay off the first 2 billion gold marks of reparations

1922- Germany were unable to make further payments

Mostly paid in goods, e.g. coal, iron and wood

The allies did not believe this

Attitudes towards Germany were still very hostile

They were accused of trying to 'get out of' their reparation responsibilities

French occupation of the Ruhr 1922

The Ruhr was Germany's most valuable industrial area

French troops took over iron and steel factories, coal mines and railways

Broke the rules of the League of Nations

Weimar Government ordered passive resistance

Ended in violence, and the death of 132 Germans

150,000 were expelled from their homes

The striking workers had to be paid and the people expelled from their homes had to be looked after

The Government printed more money

Caused a further loss of confidence in the Weimar government

Figures and Statistics

By 1922 a loaf of bread cost 163 marks

Dawes Plan 1924

September 1923 bread was 1,500,000 marks

November 1923- reached a peak of 200,000,000,000 marks

Set realistic targets for German reparations.

Set the figure at 50 million instead of 2 billion

US government loaned Germany 200 million

Impact of Hyperinflation

Workers were paid by the hour and rushed to spend money before it became more worthless

Shopping with wheelbarrows full of money

Pensions became worthless

Restaurants did not print menus, as by the time food arrived the price had increased

In the winter of 1923 the poor burned furniture to stop themselves freezing

The savings and investments of the middle classes vanished

Hyperinflation In Germany