Hyperinflation, 1923 (dec 23, 1922 – dec 1, 1923)
Description:
-Post-war Germany: economic hardship, unemployment and poverty. It was also burdened with payment of war reparations.
-The Weimar government printed more money as a solution but failed to keep up with reparation payment.
-In response, France and Belgium invaded Ruhr, a German industrial zone, to ‘teach Germany a lesson’.
-The Weimar government responded by printing more money.
-However, it led to hyperinflation. The more money was printed, the more its value dropped.
-As a result, savings became worthless and many Germans became poor overnight.
-Germans blamed the Weimar govt and it lost supporters, who felt that the govt had failed.
-The problem was finally resolved when a new Chancellor, Gustav Stresemann replaced the currency with the new Rentenmark.
-Stresemann negotiated for loans from the USA to pay reparations to the Allies. He eased the border tensions between Germany and France with the Locarno Treaties.
TB pg 70
Added to timeline:
Elective History
Combined Humanities 2267
unfinished; only did Chpt 1-3++
Date:
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