Summary 2 - Causes of hyperinflation Flashcards
What was the total amount of reparations needed to be paid by Germany?
£6.6 billion
What did the government order workers to do in the Ruhr?
Passive resistance
Why was passive resistance a poor idea from the government?
The workers still had to be paid even though they were producing no goods
What happened to government income due to passive resistance in the ruhr?
Government revenue fell
What happened to government income due to passive resistance in the ruhr?
Government revenue fell
Due to government expenditure rising and income falling what happened to the budget?
There was a budget deficit
As Germany were paying expensive prices for imports what happened to inflation due to good shortages?
It grew
How did Germany go about replacing the coal they lost due to the ruhr?
They had to spend extra money on importing it from foreign countries
On what date did money in Germany become virtually worthless?
November 1923
After money what was the most effective way of buying goods once the currency fell?
Bartering
In January 1914 what was the value of the mark to the pound?
20 marks
In November 1923 what was the value of the mark to the pound?
1,680,800,000,000,000
What was unemployment like in 1929?
Low
Who did Inflation benefit?
industrialists and the government was the real value of the debt was less when they were repaying loans
