causes

• the franco-belgin occupation of the Ruhr by 60,000 troops in which 132 germans were killed and 150,000 germans were ejected (January 1923) led to payments to the 2 million striking workers, who needed wages and goods from the government
• tax revenue fell due to higher unemployment and less business owners, as well as a lack of production, whereas germany were spending more on social welfare reforms e.g.

  • state health insurance (1919)
  • 8 hour working day (1919)
  • youth welfare act (1922)
• Germany were forced to import coal and pay for It using their limited foreign currency reserves, as there was zero industrial production from the ruhr
• a shortage of goods caused prices to be pushed up even more, and the total cost of passive resistance was twice the annual reparations payment.
• germany had printing pressers working continuously, and some even collected their wages in wheelbarrows, as Germany were forced to keep on printing money