Inflation in Germany

"At the end of WWI, there was much political instability because of the revolutions throughout Germany"

"Germany was really divided politically, socially, and economically. International Context With all the war debts, Germany had so many problems with so many countries, they had no help for  themselves."

"Economic à Extreme inflation led people to blame others and do whatever they had to in order to eat.

"The Struggle for the Ruhr: France occupied the Ruhr Basin because they felt Germany was not obeying the treaty"

"Contracts and Agreements: Countries formed agreements with each other. Lost 13.1% of its territory and 10% of its population"

"These territories were rich in agricultural and mineral resources"

"Loss of Alsace-Lorrain and half of Upper Silesia disrupted some of the most important industrial and transportation systems"

"Allies had the right to confiscate all German private property in their countries. Foodstuffs had to be imported"

"Minerals previously mined in Germany now had to be imported"

"No longer export raw materials"

"Loss of their merchant fleet deprived Germany of foreign exchange that other countries paid them for their fleet services"

"Loss of the land (money) abroad decreased their profit and interest payments May, 1921"

"Called the “ultimatum” because unless Germany accepted this plan within 6 days, the Ruhr Basin would be occupied."

"This was the final payments plan which totaled war reparations at 132 billion gold marks"

"This was 3 times what Germany was capable of paying"

"Counter Revolutionàpolitical instability led people to riot and use violence as a means of control and power§Treaty of Versailles: gave Germany the sole responsibility for the war guilt and reparations"

 Reference: Hyperinflation (2000) [Online] Available at: <www41.homepage.villanova.edu/.../Inflation%20in%20Germany%201923. ppt> [Accessed on: 13 February 2011]