The invasion of the Ruhr and Hyperinflation

• What was Germany's biggest problem after World War I?

  Germany was completely bankrupt
• How did the Treaty of Versailles affect Germany's economy?

  It took away wealth-generating areas
• What happened by 1923 regarding reparations payments?

  Germany could no longer make payments
• How did Germany pay part of the reparations agreement?

  By providing coal from the Ruhr
• What action did the French take in December 1922?

  Sent troops into the Ruhr
• What was the Weimar government's response to the French occupation?

  Called for passive resistance from citizens
• What was the impact of the French occupation on Germany's economy?

  It worsened Germany's financial problems
• What economic policy did the Weimar government adopt during the 1910s and 1920s?

  Printed more and more money
• What was the result of excessive money printing in Germany?

  It caused hyperinflation in 1923
• How did hyperinflation affect the value of banknotes?

  Banknotes became virtually worthless
• What was the price of a loaf of bread in 1919?

  One mark
• What was the price of a loaf of bread by the end of 1923?

  200,000 billion marks
• What did people begin to do due to hyperinflation?

  Barter goods and services
• Why did people burn banknotes during hyperinflation?

  It was cheaper than buying fuel
• Who benefited from hyperinflation in Germany?

  Those with debts could pay them off easily
• What happened to savings during hyperinflation?

  Savings became completely worthless
• What was the impact of hyperinflation on the middle class?

  They lost their life savings
• What happened to businesses during hyperinflation?

  Many went bankrupt and were bought out
• What was a significant consequence of hyperinflation for foreign suppliers?

  They refused to be paid in marks
• How did hyperinflation affect the Weimar government’s image?

  It showed the government to be weak
• What actions did the Weimar government take against uprisings?

  Used the Freikorps to suppress them
• What was the effect of government failures on extremist parties?

  They gained support from disillusioned citizens