Economic crisis

Causes of the occupation of the Ruhr 1923-1925

• ToV required Germany to make regular reparations payments to the Allies.

• Germany fell behind on reparations payments.

• France and Belgium occupied the Ruhr to extract the reparations themselves.

results of the occupation of the Ruhr 1923-1925

• Weimar government responded with passive resistance:

• Industrial strikes/refusing to cooperate with the French and Belgian occupiers.

• Passive resistance didn’t work.

• Industrial production fell, further weakening the economy

causes of hyperinflation 1923-1925

• Germany defaulted on its reparations payments, France and Belgium occupied the Ruhr.

• Weimar government printed more money to pay for their passive resistance response and for ToV reparations •

• Resulted in Hyperinflation. German currency became worthless.

consequences of hyperinflation 1923-1925

• middle class badly hit, as they lost their savings.

• blamed the Weimar Constitution.