rhur and hyperinflation

• What economic crisis did the German people face in 1923?

  They faced hyperinflation that made the German currency worthless.
• What is hyperinflation?

  It is when the price of goods increases spectacularly.
• Why did hyperinflation occur in Germany?

  The government printed more money without sufficient gold reserves, leading to bankruptcy.
• What actions did the Weimar government take in 1922-23 that contributed to hyperinflation?

  They printed more money to cover war damage costs and unemployment relief.
• What event in January 1923 exacerbated the economic crisis in Germany?

  French troops invaded the Ruhr to take reparations payments in goods and raw materials.
• What was the impact of the Ruhr occupation on German workers?

  German workers in the Ruhr refused to work, which harmed the economy.
• What happened to the German mark by November 1923?

  The German mark became worthless.
• What were some negative effects of hyperinflation in Germany?

  People could not afford essentials, wages did not keep up with prices, and savings became worthless.
• Who suffered the most from hyperinflation?

  People with fixed or monthly incomes, such as pensioners, suffered the most.
• What were some positive effects of hyperinflation in Germany?

  Farmers benefited from higher food prices, and some could pay off loans.
• What were the main effects of hyperinflation on different groups in Germany?

  • Negative effects:
  • People could not afford essentials like bread.
  • Wages rose slower than prices.
  • Many businesses went bankrupt.
  • Fixed-income individuals suffered most.
  • Savings became worthless, affecting the middle class.
  • Positive effects:
  • Farmers received higher prices for food.
  • Some could pay off loans and mortgages.
  • Rents became very cheap.
  • Foreign visitors could buy more for their money.
• What years did the Weimar Republic span?

  1918-1929
• Which countries occupied the Ruhr in 1923?

  France and Belgium
• What was the purpose of the occupation of the Ruhr?

  To force compliance with reparations payments
• What strategy did France and Belgium employ during the Ruhr occupation?


  Occupation strategy
• What military tactics were used by France and Belgium during the Ruhr occupation?

  • Encircling key industrial centers
  • Using troops to control factories and mines
  • Implementing passive resistance by German workers
  • Establishing military tribunals to manage the occupation
• What economic consequence did the invasion of the Ruhr trigger in Germany?

  Hyperinflation
• What happens during hyperinflation?

  Prices rise exponentially, devaluing money