Hyper-inflation

Question 1

What started off the economic crisis in Weimar Germany (not ToV)?

Answer 1

When Germany missed a reparations payment in 1922

Question 2

What was the period 1924-29 referred to as?

Answer 2

The ‘Golden Years’

Question 3

What did missing a reparations payment directly spark off?

Answer 3

Invasion of the Ruhr by French and Belgian troops to take what was owed to them in the form of raw materials and goods

Question 4

What was the Weimar Gov.s response to the invasion in the Ruhr?

Answer 4

They told the workers not to co-operate and go on strike using PASSIVE RESISTANCE

Question 5

What was the main flaw in the workers’ strike in the Ruhr?

Answer 5

The German gov. still paid the workers’ families and slowly ran out of money

Question 6

What was the Weimar gov.’s solution to running out of money?

Answer 6

To print more

Question 7

What did printing more money lead to?

Answer 7

Reduced value of money, so shops and suppliers had to put up prices, so people had to be paid more

Question 8

What did printing more money eventually spiral into?

Answer 8

Hyper-inflation

Question 9

Name 6 negative impacts of hyper-inflation

Answer 9

1. Food items such as eggs and bread became UNAFFORDABLE
2. Saving reduced in value and became worthless
3. People had died during crisis in Ruhr
4. People with FIXED INCOMES suffered
5. Even increases some workers had could not match the rising prices
6. Loss of confidence in Weimar Republic (powerless after hyper-inflation)

Question 10

What did the loss of confidence in the Weimar gov. lead people to do?

Answer 10

Turn to EXTREMIST parties

Question 11

What were 2 positive impacts of hyper-inflation?

Answer 11

1. Loans easier to pay off as worth less than before

2. Some business men able to pay off loans used to set up their companies

Question 12

Who tried and failed to use this economic chaos to seize power?

Answer 12

The Nazis (but also other extremist groups. Think of the uprisings)

Question 13

When did hyper-inflation kick-off?

Answer 13

1923

when all the stuff on this deck happened bar the missed reparations payment