Hyperinflation

• What year did hyperinflation occur in Germany?

  1923
• What does inflation mean?

  Prices rise, requiring more money to buy
• How did government decisions affect inflation in Germany?

  They worsened the existing inflation problem
• What was the government's revenue between 1919 and 1923?

  Only a quarter of what was needed
• Why did the German government print more money in 1923?

  To pay debts amid falling tax revenue
• How many paper mills did the government have in 1923?

  300 paper mills
• How many printing shops were dedicated to printing bank notes in 1923?

  2,000 printing shops
• What was the effect of printing more money on inflation?

  It worsened the inflation spiral
• What was the cost of a loaf of bread in 1919?

  One mark
• What did a loaf of bread cost in 1922?

  100 marks
• What was the cost of a loaf of bread in 1923?

  200 billion marks
• What is hyperinflation?

  Extreme form of inflation making living impossible
• How did people cope with hyperinflation in Germany?

  Carried money in baskets and wheelbarrows
• Why were workers paid twice a day during hyperinflation?

  To buy goods before prices rose again
• What alternative payment method did some shops use?

  Swapping goods instead of taking money
• What happened to imports during hyperinflation?

  They dried up due to worthless marks
• Who was hardest hit by hyperinflation?

  The middle classes with savings
• How did people with loans benefit from hyperinflation?

  The value of money owed decreased significantly
• Who benefited from hyperinflation besides those with loans?

  People who hoarded goods for profit
• How did foreign visitors benefit during hyperinflation?

  Their currency increased in value against the mark
• What was the public sentiment towards those profiting from hyperinflation?

  Germans resented those profiting from suffering
• Who was the chancellor that found a solution to hyperinflation?

  Gustav Stresemann
• What was the impact of hyperinflation on the Weimar Republic's reputation?

  It damaged their credibility and strength
• Who suffered the most due to hyperinflation?

  The German people, including the middle classes
• What did the middle classes typically have that made them vulnerable during hyperinflation?

  Savings stored in banks or pensions
• What was the overall effect of hyperinflation on the Weimar Republic?

  It led to blame and loss of support
• What were the key consequences of hyperinflation in Germany?

  • Prices skyrocketed, making living impossible
  • People carried money in baskets and wheelbarrows
  • Workers paid twice a day to buy goods quickly
  • Imports dried up due to worthless currency
  • Middle classes lost savings, leading to resentment
  • Some profited from loans and hoarding goods
• What were the main factors contributing to hyperinflation in Germany?

  • Government decisions worsening inflation
  • Revenue only a quarter of what was needed
  • Increased money printing to pay debts
  • Economic instability from unemployment and failing factories
• What were the effects of hyperinflation on different social classes in Germany?

  • Middle classes hardest hit due to savings
  • Wealthy elite less affected by inflation
  • Borrowers benefited as debt value decreased
  • Foreign visitors gained purchasing power
• What was the public perception of the Weimar Republic during hyperinflation?

  • Blame for suffering and economic instability
  • Loss of support from moderates and middle classes
  • Perceived weakness due to inability to manage crisis