hyperinflation

• The kaiser funded WW1 through international loans, so germany were in debt. after being ordered to pay 6.6 billion pounds in reparations in gold, their currency (which was backed by the gold standard) collapsed, and in january 1921, 1 pound was 256 marks. after the first reparation payment it was 764 marks
• Germany defaulted from reparation payments in 1923, so France and Belgium seized the Ruhr whilst Germany was too weak to fight back. in order to fight back germany encouraged citizens to use passive resistance, so germany had to pay these strikers a wage so more money was printed
• the economy was halted but germany had to keep paying strikers. the reichsmark lost all iys value, by summer 1923, 2000 printing oressers and 300 paper mills were printing more money every day. in january, 1 pound was 71,888 marks, by summer it was 1.4 million and by november it was 1680 trillion
• in 1919, a loaf of bread cost one mark, whereas in 1923, a loaf of bread cost 200,000 billion marks
• by the end of 1923, 1.2 sextillion marks were in circulation, so Chancellor Gustav Stresseman cancelled the old currency and introduced the rentenmark which came from a large american loan
• germany began to recover but their stability was dependent on america as if america recalled the loans the german economy would collapse
• social impact:

  food shortage, no fuel, and fuel is expensive, and thousands die of cold, starvation, and disease.

  workers need to be paid twice a day to afford basic necessities

  big firms benefited, whereas the middle class suffered
• political impact:

  people blame the government and no longer trust that the weimar republic can take care of their living conditions and interests