Hyperinflation In Germany

Hyperinflation In Germany

1. Reparations

   • Germany managed to pay off the first 2 billion gold marks of reparations
     • Mostly paid in goods, e.g. coal, iron and wood
   • 1922- Germany were unable to make further payments
     • 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

2. 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

3. Figures and Statistics

   • By 1922 a loaf of bread cost 163 marks
     • September 1923 bread was 1,500,000 marks
       • November 1923- reached a peak of 200,000,000,000 marks
   • Dawes Plan 1924
     • Set realistic targets for German reparations.
     • Set the figure at 50 million instead of 2 billion
     • US government loaned Germany 200 million

4. 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

Imagens e arquivos do mapa