Hyperinflation

• France was running out of patience as Germany stopped paying their instalments. They had to war debts to pay to the USA

• French and Belgian troops invaded Ruhr, an industrial region in Germany. This was legal under the Treaty of Versailles

• They took control over factories, mines and railways and took food and goods from shops. They arrested any resisting Germans

• German workers were ordered by the government to strike but would still get paid

• Germany had no goods to trade as Ruhr stopped producing coal iron and steel to sell to other countries. The government started to print more money to pay striking workers

• Wages began to be paid daily instead of weekly because of hyperinflation

• There were major food shortages as farmers stopped selling food for worthless money.

Consequences:

• The government lost more support

• Businesses collapsed

• People's savings became worthless

• Elders who lived on fixed pensions couldn't survive on their monthly income

  • People who borrowed money could pay off their debts easily