Hyperinflation Flashcards
What directly caused hyperinflation?
The German government printing loads of money (in response to the collapse of industry following the French invasion of the Ruhr)
What did hyperinflation do to the German currency?
Made it worthless
Who did hyperinflation benefit?
- Big industrialists who could pay off their debts
- The German government, who could pay off their war debts
- People who had taken out loans - which were now easily repayable
Who was particularly hurt by hyperinflation?
- The middle classes - their savings were now worthless
- Pensioners - their pensions were now worthless
What happened to many people’s wages?
They were paid daily rather than monthly
What could happen to the price of a loaf of bread whilst you were in the queue?
It could double during the time you moved from the back of the queue to the front of the queue
When was hyperinflation at its height (its worst)?
November 1923
How much did a loaf of bread cost by November 1923
201 billion marks
How did some people take their wages home?
In wheelbarrows
Why was hyperinflation a serious crisis for the Weimar Republic?
- Many middle classes and pensioners - groups who would naturally support a democracy - lost faith in the new system of government
- It also made the German government look weak and ineffective
What did British historian, Finlay McKichan say about hyperinflation?
“Many middle-class Germans never forgave the republic” for hyperinflation
Who solved the crisis?
Gustav Stresemann - who briefly became Chancellor in August 1923
How did Stresemann end hyperinflation?
- He called off passive resistance in the Ruhr
- He replaced the mark with a new currency, the Rentenmark
Who did hyperinflation benefit politically?
Right-wing opponents of the Weimar Republic - they had another crisis to blame on them
How do you spell the chancellor’s name?
Stres - e - mann (one s in the midde - and two ns)
