Economic Hyperinflation Flashcards
(24 cards)
How was Germans economy before WW1?
Best economy in Europe
- industrial (coal and iron)
-developed banking system
What 6 things caused hyperinflation?
- Territories taken (TOV)
- Products
- Reparations
- Inflation
- Printing money
- Relying on foreign loan
Hyperinflation causes 1 / 6
Territory taken by TOV
Saarland / Alsace Lorraine taken
16% coal
75% iron
Hyperinflation causes 2 / 6
Products
•Trade collapsed during war
•war dedicated to weapons. Shortage of consumer goods
Hyperinflation causes 3 / 6 Reparations
6.6 billion
Hyperinflation causes 4 / 6
Inflation
1918 at 4 fold (x4)
1920 at 14 fold (x14)
Hyperinflation causes 5 / 6
Printing money
Wheelbarrows more valuable
During war time and worsened 1922 postponements
(Check tov)
Hyperinflation causes 6 / 6
Relying on foreign loan
Kaiser confident to win war - borrow money and pay it back (fail)
How much debt did Ebert inherit from Kaiser
1.44 billion marks
Why did Ebert not raise taxes and cut gov spending?
Taxes
- no one had money to give
- right emphasised already paying relations
Gov spending
-less jobs for right civil servants
FRANCO-BELGIUM INVASION/RUHR
Cause
•British allies made it impossible to pay reparations (take away land eg Rhineland)
•fell behind on payments
FRANCO-BELGIUM INVASION/RUHR
Where is the Ruhr located?
In Rhineland (connect france and Germany)
FRANCO-BELGIUM INVASION/RUHR
% of mining production?
produced 85% coal and iron
FRANCO-BELGIUM INVASION/RUHR
How many men did France / Belgium send? Why?
100,000
To force Germans to work to pay reparations in mines
FRANCO-BELGIUM INVASION/RUHR
Germany’s response
New chancellor Wilhelm Cuno
Ordered passive resistance - payed strike (led to further inflation)
FRANCO-BELGIUM INVASION/RUHR
Result?
•German paramilitary (unofficial military) groups to fight French
- 132 Germans shot
- 150,000 evicted
- French set own courts to punish
•French brought own workers, production fell 1/3
FRANCO-BELGIUM INVASION/RUHR
How much did production fall after the French brought their own workers
1/3
FRANCO-BELGIUM INVASION/RUHR
How many Germans shot after the French paramilitary tried to resist
132
FRANCO-BELGIUM INVASION/RUHR
When?
Jan 1923
ADDITIONAL
What / when was the Genoa conference
April 1922
conference of 28 countries
Germany represented by Walter Rathenau
Failed to negotiate reparation cuts
ADDITIONAL
Genoa conference
German leader
Walter Rathenau
ADDITIONAL
Matthias Erzberger
What did he do
Finance minister
Spend more money than gov to stimulate economy. Cycle of prosperity. Improved it a little
ADDITIONAL
Finance minister?
Matthias Erzberger
