Inflation/hyperinflation

• shortages of goods in 1923 meant the price of things went up - inflation
• the gov needed money to pay their debts but unemployment meant that they had less taxes - money - therefore the gov decided to print more money - in 1923, the gov had 300 paper mills printing more bank notes
• printing more money made things worse - more money went the prices went up - as prices went up, more money was printed, so prices went up more, so the gov printed more money - Hyper-inflation
• • hyperinflation made normal living impossible because;

  1. washing basket full of money - money was worthless
  2. money could be used as toys

  • hyperinflation meant everyone suffered from shortages - foreign suppliers refused to accept German marks - £1 = 20 billion German marks
  • peoples saving were hit hardest (pensioners) - saved money became worthless, effected rich - people who benefitted (those who had loans, foreign vistitors)
• this showed the Weimer Republic was weak - middle classes suffered and blamed the gov - extremist parties gained strength