Summary 2 - Economic instability 1919 -1923 - The legacy of the Kiaserreich

Question 1

What was Germany’s national debt in 1913?
What was their national debt in 1919?

Answer 1

1913 - National debt was 5,000 million Marks
1919 - National debt was 144,000 million Marks

Question 2

In 1920, the Mark was worth what % of its 1914 value?

Answer 2

10%

Question 3

What sort of fiscal policy did the Weimar government chose to implement after the war and why?

Answer 3

They refused to raise taxes or cut government spending due to the fear of becoming more unpopular.

Question 4

What happened to the prices of goods between 1918 and 1919?

Answer 4

They doubled

Question 5

What happened to the prices of goods between 1919 and 1920?

Answer 5

They quadrupled

Question 6

Give two benefits of the inflation that was present in Germany after WW1?

Answer 6

Inflation lowered the volume of government debt.
Industrialists benefitted by taking out short term loans. By the time they had to repay the loan the value of the money borrowed had significantly fallen.