Hyperinflation

• 1922 


  Germany failed to pay a reparations payment
• 1923 


  French and Belgium troops in protest, entered and occupied The Ruhr(Germanys main industrial area and source of the economy), in hopes to take reparations in the form of industrial goods rather than the money
• How did Germany react to occupation in ruhr?

  In passive resistance, where the workers would stop working and protest but the government would continue paying wages
• Why was paying workers wages bad?

  German economy was failing so Germany paying wages without income from The Ruhr caused them to have to print more money
• Printing more money 


  Meant that the more money printed the more worthless it became and prices for goods increased
• What did the hyperinflation cause for people? 


  The public ended up carrying wheel barrows of money for milk, or use their money as toilet paper, or as fuel replacing wood in fires
• The troops didn’t leave until 1925 when the economy began improving by way of Gustav Stresemann
• Why did Germany miss the payments?


  Their economy was failing
• What did France and Belgium think the reason for missing payments was?


  Defiance and unwillingness to pay money that they ‘did’ have