top-rated free essay

The Hyperinflation of 1923 & the “Golden Era” of the Weimar Republic

By SpudBuddyboy1 Jun 30, 2013 283 Words
In 1922 because of the poor German economy the German government could not afford to pay the bill of ₤6.6 billion appointed to them by the Allied Reparations Commission, as a Result the French government sent French and Belgian troops to occupy the Ruhr. they intended to seize the coal and use the goods produced by the factory's to pay off the money owed. the German government called a paid workers strike. to do this they printed more money this caused the value of the mark to fall, as well as this the loss of production in the Ruhr caused factories to close elsewhere in germany, unemployment rose to 23%, tax money collapsed and the government's solution was to print even more money. all this together caused a major Hyperinflation and by 1923 the value of the mark collapsed altogether by november 4 trillion marked equaled 1 dollar. In 1923 came the solution to this great depression of Germany. All financial support to the general strike in Ruhr was ceased, a new stable currency the Rentenmark was introduced it was equal to 1 trillion marks. This ended the hyperinflation. stable exchange rate was established with the dollar. In return for Chancellor Stresemann agreement to meet Germany's reparations obligations the Allies agreed to set up a committee under the American banker Charles Dawes. his Proposals set a Moderate scale of payments, rising from ₤50 million to ₤125 million after five years. The french ended the occupation of Ruhr and ₤800 million was loaned from America. for the next five years because of American loans the German economy was booming and the Weimar Germany prospered. This time was known as the “Golden Era”.

Cite This Document

Related Documents

  • Weimar Republic

    ...Dawes In 1923, the Weimar Republic was on the verge of collapse, but, surprisingly, the crisis was the start of a period of stability and success. The period 1923-1929 was a time when the economy boomed and cultural life flourished in Germany. This dramatic turnabout happened because Germany was saved by two people - Gustav Stresemann and Char...

    Read More
  • Strengths and weaknesses of weimar republic

    ... The Weimar Republic was set up in Germany after world war one, after the Kaiser had been abducted in 1918 . It was the most democratic government in the world, even allowing women to vote. The new government got off to a bad start, Germany was nearly bankrupt and unemployment was higher than ever. They were labelled ‘November criminals’ du...

    Read More
  • The Weimar Republic

    ...The Weimar Republic Key features and issues * successes and failures of democracy * nature and role of nationalism * influence of the German army * changes in society From this tutorial you will learn about the political, economic and social issues in the Weimar Republic to 1929. The following are extracts from an article...

    Read More
  • Weimar Republic

    ...The Weimar Republic -- Doomed to Fail The Weimar Republic (1919-1933) was born in the aftermath of the defeat of Germany in World War I. Not only was this a fall from grace, it was a resounding crash that shattered Germany's belief that they were the superior undefeatable race. Following the destruction of the old totalitarian German Empire, a ...

    Read More
  • Weimar Republic

    ...Why the Weimar Republic Failed Mark A. Hoyert Monmouth College Why Did the Weimar Republic Fail? Mark A. Hoyert, Monmouth College  mhoyert@monm.edu Abstract: What led to the fall of the Weimar Republic and the rise of Hitler’s Third Reich continues to be an important question for students of h...

    Read More
  • Threats Towards the Weimar Republic

    ...The Ruhr Crisis, hyperinflation and the Munich (beer hall) Putsch; these catastrophic events were great threats to the Weimar Republic. The Ruhr Crisis occurred in January 1923 when Germany missed a reparations payment to the French in 1922 therefore French and Belgium troops decided to invade the Germans raw materials and goods so the German wo...

    Read More
  • Explain why 1923 was a difficult year for the Weimar Republic.

    ...1923 was one of the worst years for the Weimar Republic. During the first few years the Republic faced many crises. It was working in very difficult situations: trying to stabilize Germany; trying to rebuild the countrys infrastructure after the World War; and having to cope with the problems caused by the Treaty of Versailles. 1923 brought the ...

    Read More
  • collapse of Weimar Republic was inevitable

    ...Do you agree that the collapse of Weimar Republic was inevitable? Elaborate your answer. I disagree that the collapse of Weimar Republic was inevitable. Weimar Republic was a democratic government created in 1919 after WWI. The Republic just lasted 13 years. Weimar Republic inherited enormous problems from the previous government. She signe...

    Read More

Discover the Best Free Essays on StudyMode

Conquer writer's block once and for all.

High Quality Essays

Our library contains thousands of carefully selected free research papers and essays.

Popular Topics

No matter the topic you're researching, chances are we have it covered.