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Germany in Transition: Hyperinflation

germany-in-transition-hyperinflation

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What is hyperinflation?

When a currency inflates faster than wages rise

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{"id":1851475,"question_id":"418787","created_at":"2018-03-28 12:54:24","updated_at":"2018-03-28 12:54:24","answerTitle":"When a currency inflates faster than wages rise","isAnswerCorrect":"1","isAnswerBlank":null,"isInSecondMatchingColumn":null,"sequenceOrder":null,"lang":null,"type":0}

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What caused hyperinflation?

Because Germany couldn't keep up with the reparations the Ruhr was invaded by France & Belgium. They intended to take industrial goods as in compensation. The government told the workers not to do anything(passive resistance). However the workers still needed paying, so the government printed more money.

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{"id":1851476,"question_id":"418788","created_at":"2018-03-28 12:56:43","updated_at":"2018-03-28 12:56:43","answerTitle":"Because Germany couldn't keep up with the reparations the Ruhr was invaded by France & Belgium. They intended to take industrial goods as in compensation. The government told the workers not to do anything(passive resistance). However the workers still needed paying, so the government printed more money.","isAnswerCorrect":"1","isAnswerBlank":null,"isInSecondMatchingColumn":null,"sequenceOrder":null,"lang":null,"type":0}

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What were the effects of hyperinflation?

1) People couldn't afford basics such as good 2) Peoples savings became worthless 3) Foreign visitors could buy lots of goods cheaply 4) The Weimar government was blamed

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{"id":1851483,"question_id":"418792","created_at":"2018-03-28 12:59:17","updated_at":"2018-03-28 12:59:17","answerTitle":"1) People couldn't afford basics such as good 2) Peoples savings became worthless 3) Foreign visitors could buy lots of goods cheaply 4) The Weimar government was blamed","isAnswerCorrect":"1","isAnswerBlank":null,"isInSecondMatchingColumn":null,"sequenceOrder":null,"lang":null,"type":0}

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How was hyperinflation solved?

A new currency was introduced called the Rentenmark

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{"id":1851484,"question_id":"418793","created_at":"2018-03-28 13:00:17","updated_at":"2018-03-28 13:00:17","answerTitle":"A new currency was introduced called the Rentenmark","isAnswerCorrect":"1","isAnswerBlank":null,"isInSecondMatchingColumn":null,"sequenceOrder":null,"lang":null,"type":0}

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