Hyperinflation in Germany

• What historical event is the session about?

  Hyperinflation in 1923
• What caused hyperinflation in Germany in 1923?

  The French invasion of the Ruhr region
• How did the French invasion affect German industry?

  It caused financial losses for German industry
• What was the German government's response to the strikes?

  They printed money to pay the workers
• What had Germany's wealth been based on before hyperinflation?

  Gold reserves
• What was the effect of printing more money in Germany?

  It led to inflation and price rises
• How does printing money weaken an economy metaphorically?

  Like adding water to orange squash
• What happened to the value of money during hyperinflation?

  It became worthless
• What could a 10 Mark bank note buy in 1920?

  About 10 loaves of bread
• What could a 1 million Mark note buy in February 1923?

  About one loaf of bread
• What was the value of a 50 million Mark note in September 1923?

  It couldn't buy a loaf of bread
• What was the purpose of printing local bank notes in German cities?

  To keep up with rising prices
• What was a practical use for worthless banknotes during hyperinflation?

  Lighting fires instead of buying kindling
• How quickly did hyperinflation reduce the value of money?

  Halved every half hour
• What did people do with their wages during hyperinflation?

  Spent them quickly to avoid loss
• What happened to the savings of most people during hyperinflation?

  They lost their savings overnight
• What did Wilhelm Derko recall about money distribution in 1923?

  Bundles of notes were thrown from a lorry
• How did people barter during hyperinflation?

  Exchanged goods instead of using money
• Who benefited from hyperinflation?

  People with debts and foreign visitors
• What currency did the government introduce in November 1923?

  The temporary Rentenmark currency
• What was the exchange rate of the Rentenmark to old marks?

  1 Rentenmark = 1,000 billion old marks
• What was introduced in 1924 after the Rentenmark?

  The permanent Reichsmark currency
• What was the impact of hyperinflation on the middle class?

  They were hardest hit financially
• How did the French occupation contribute to hyperinflation?

  It worsened economic mishandling by the Weimar government
• What was the cost of a loaf of bread by the end of 1923?

  About 200,000 marks
• How did hyperinflation affect everyday life?

  It made life impractical and chaotic
• What was the general sentiment towards those who profited from hyperinflation?

  They were hated and resented
• What did people use banknotes for during hyperinflation?

  Playing instead of using wooden blocks
• What was the long-term effect of hyperinflation on people's trust?

  Many lost trust in the Weimar government
• What role did passive resistance play in the strikes?

  Workers went on strike against the occupation
• How did World War I affect Germany's gold reserves?

  Germany spent all its gold reserves
• What does the metaphor of orange squash illustrate?

  The dilution of wealth through money printing
• How did hyperinflation visually manifest through banknotes?

  Banknotes had increasingly higher denominations
• What were the practical implications of hyperinflation on daily life?

  People had to barter for goods
• What specific experiences did individuals have during hyperinflation?

  People used banknotes for lighting fires
• What was the significance of the Rentenmark introduction?

  It restored confidence in the German currency
• How did hyperinflation affect different social classes?

  Middle classes were hardest hit financially
• What were the consequences of the French occupation on the economy?

  It led to rapid uncontrolled price rises