1923 Economic Crisis

Question	Answer
Why did French and Belgian troops decide to invade the Ruhr?	Germany was refusing to pay reparations so their only option was to take goods by force It was completely legal under the Treaty of Versailles
Who did the French also have to pay war debts to?	the USA
Why didn't Germany stop the French and Belgian troops?	What they were doing was legal and the German army was very small
What did the Germans do instead?	They introduced a campaign of passive resistance
How did the government start paying their workers' wages?	By printing paper money
What happened as a result?	The value of the mark collapsed
How much did a loaf of bread cost in 1918?	0.63 marks
How much did a loaf of bread cost in 1923?	201 Billion Marks
Which social class did hyperinflation damage the most?	The middle and working classes as their savings and wages suddenly became worthless
Who's position in society was potentially strengthened by the crisis?	Rich industrialists and landowners as they controlled the means of production
How did the economy recover?	Through loans and investments from abroad
Which German politician masterminded the recovery?	Stresemann
When Stresemann call off passive resistance in the Ruhr?	September 1923
What else did the Government do in September 1923?	Resume reparations payments Issue a new currency: the Rentenmark

Resource summary

	Created by Joanna van Dyk almost 9 years ago