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2O Democracy and Nazism: Germany, 1918–1945

The Ruhr Occupation and the Hyperinflation of 1923

  • 3 things to know
  • Component 2

Overview

Recall questions on the causes of inflation, the reparations default and the Franco-Belgian occupation of the Ruhr, passive resistance, the collapse of the mark in 1923 and who lost and who gained from hyperinflation.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Process

How did the German government's monetary policy contribute to inflation?

Process

How did the government's response to the Ruhr occupation accelerate hyperinflation?

Key term

What was the exchange rate between the US dollar and the German mark by November 1923?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    How did the German government's monetary policy contribute to inflation?

    Model answer

    The government printed money to pay reparations and domestic debts, contributing to inflation.

  2. 2

    Define inflation.

    Model answer

    A general increase in prices and fall in the purchasing value of money.

  3. 3

    Define hyperinflation.

    Model answer

    Extremely rapid and out-of-control inflation where currency loses value at an accelerating rate.

  4. 4

    When did Germany default on reparations payments?

    Model answer

    Late 1922.

  5. 5

    What action did France and Belgium take in January 1923 in response to Germany's reparations default?

    Model answer

    They occupied the Ruhr to seize industrial production as reparations payment.

  6. 6

    What was passive resistance in the Ruhr, and who encouraged it?

    Model answer

    The German government encouraged workers to refuse to cooperate with occupying forces.

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