Hyperinflation (dec 25, 1922 – nov 15, 1923)

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The Treaty of Versailles demanded £0.1 billion to be payed in reparations per year to the allies - primarily France and Belgium.
They managed in 1922 to pay the first instalment but in 1923 they were unable to afford it which meant that France and Belgium didn't received what they were owed.
In response, France and Belgium invaded the Ruhr area of Germany (the industrial heart of Germany) and started to take the goods that were being produced. In total around 130 German civilians were killed.
The government policy was passive resistance and this, in essence, meant a general strike. The government had to still pay wages as the goods were being taken directly by the French which increased debt and unemployment - leading to the government printing more money to cover the cost.
To accommodate for the inflation this caused, prices rose and because no iron, steel or coal was being produced for the Germans more and more money had to be printed until it became worthless over a few months. Poverty was rife and all savings became worthless (as well as debts). Those who could produce their own food were better off than the rest and bartering became common.
Normal trade became impossible, pensioners on fixed income struggled and Germany was in crisis.
The crisis ended when Chancellor Stresemann introduced a temporary new currency - the Rentenmark - which was pushed through with the effort of Schacht (president of the Reichsbank)
The crisis had stopped but the loss of savings and poverty had long term effects.

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