Hyperinflation Flashcards
Whe was the invasion of the Ruhr?
1923
Why was the Ruhr important to Germany?
It was an important industrial area in Germany where raw materials and goods were produced
What happened during the Ruhr?
60,000 French and Belgian troops marched into the Ruhr and seized control of all mines, factories and railways. They also took supplies from shops and set up machinegun posts in the streets.
Why did the French invade the Ruhr?
Germany failed to pay them in time so they took the land and money that was owed
What was the German reaction to the invasion?
The government ordered the workers to go on strike (passive resistance)
What were the long term economic consequences for Germany?
Serious money problems
How did the government try to solve their economic problems?
In 1923, the government had 300 paper mills and 2,000 printing shops dedicated to printing more bank notes
What was the consequence of printing more money?
Hyperinflation (the value of money went down and the prices went up)
How much did a loaf of bread cost? (1919 and 1923)
1919: 1 mark
1923: 200,000 billion marks
How much was £1 in marks in 1923?
1,680,800 billion marks
