hyperinflation

when was the hyperinflation crisis

what caused hyperinflation

• reparation

• ruhr crisis and passive resistance

• constitutional commitment to welfare such as war widows, maimed veterans

• 14% of the war being paid with taxes leaving high national debt

• printing money

who were the winners of hyperinflation

• debtors

• businessmen who took out business loans

• hugo stinnes

• people on fixed rents

• farmers-remained relatively stable

who lost

• pensioners

• landlords

• war-widdows

• people who bought war bonds

• mittelstandt- no mitteltochter

• anyone with savings

when did printing notes become more expansive than their value

autumn 1923

how did the price of bread change

1. january 1923-M250

2. november 1923- M200,000,000,000

what wer dtresemans solutions

• stop passive resistance

• scrap the mark and make a new currency backed by mortages on property- rentanmark

• fire 700,000 gov employees

• dawes plan- resume reparations

what did people do with the devalued currency

• use it as insulation

• fuel for fires