Hyperinflation, 1923 (23 dez 1922 ano – 1 dez 1923 ano)

Descrição:

-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

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