How did hyperinflation happen in Germany after World War 1?

Answer 1

How the Depression affected Germany

The Great Depression, which began in the United States when the stock market crashed in 1929, profoundly affected the German economy. This is because the US government was providing loans to Germany before the Depression through the Dawes Plan as a way of helping Germany back on its feet. The US was vested in the economic health of Germany to collect on Germany's war debts to the Allies, as required in the Versailles Treaty. When the Depression caused the US to reduce these payments (Young Plan) to the Weimar Republic, Germany's struggling new democracy now dependent on this revenue, the German economy fell apart. Many historians believe this disaster opened the way for a demagogue like Hitler to appeal to some Germans desperate for jobs and restored self-esteem. Still, no more than a third of Germans ever voted for Hitler.

Answer 2

Hyperinflation is when Inflation increases at a huge rate and things become a ridculas amount of money. It was caused by the mass print out of notes to pay for the war, so tax payers had more money and this effectively de-valued the German currency. The German- Jews would obviously be effected by this but they were largely scapegoated the blame for this as some Jewish politicians had signed the Treaty of Versaille, which meant the Germans had to pay so much money in reparations. Many were also fiancers and became more well off from hyperinflation, so jealousy was also a big issue.

Answer 3

The sudden flood of paper money into the economy, on top of the general strike - which meant that no goods were manufactured, so there was more money, chasing fewer goods - combined with a weak economy ruined by the war, all resulted in hyperinflation. Prices ran out of control - eg a loaf of bread, which cost 250 marks in January 1923 had risen to 200,000 million marks in November 1923. German's currency became worthless. Some people used money as fuel. There are lots of almost amusing stories about people's wages and examples of just how fast inflation pushed prices up during the crisis: * People collected their wages in suitcases. * One person, who left their suitcase unattended, found that a thief had stolen the suitcase but not the money. * One boy, who was sent to buy two bread buns, stopped to play football and by the time he got to the shop, the price had gone up, so he could only afford to buy one. * One father set out for Berlin to buy a pair of shoes. When he got there, he could only afford a cup of coffee and the bus fare home. But remember: * Some people made fortunes during the crisis. One man borrowed money to buy a herd of cattle, but soon after paid back his loan by selling one cow. * People on wages were safe, because they renegotiated their wages every day. * Pensioners on fixed incomes and people with savings were the most badly hit. One woman sold her house with the intention of using the money to live on. A few weeks later, the money wasn't even enough to buy a loaf of bread.

Answer 4

he made them want to fight and eventually showed them to be happy with what they had.

Answer 5

Hunvai Hurdaiy

Answer 6

Loosing the war