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Germany 1919–45

Reparations, the Ruhr and the hyperinflation of 1923

  • 3 things to know
  • AS Unit 1

Overview

Passive resistance and scale of the collapse of the mark.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

Explain how the loss of territory harmed the economy after 1919.

Key term

Define passive resistance.

Key term

Who suffered most from the hyperinflation?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    How had Germany financed the First World War?

    Model answer

    Germany paid for the war largely by borrowing and printing money rather than by taxation, expecting to recover the cost from defeated enemies, and so ended the war with an enormous debt and a weakened currency.

  2. 2

    Explain how the loss of territory harmed the economy after 1919.

    Model answer

    Germany lost coalfields in the Saar and Upper Silesia, iron ore in Lorraine and a large share of its arable land, so output and export earnings fell just as the reparations bill arrived.

  3. 3

    Why did the government keep printing money in the early 1920s?

    Model answer

    Printing money allowed governments to meet welfare costs, pay for reparations deliveries and avoid raising taxes on the wealthy, and inflation had the convenient effect of wiping out the state's internal war debt.

  4. 4

    Why was the Ruhr occupied in January 1923?

    Model answer

    After Germany fell behind with deliveries of coal and timber, French and Belgian troops occupied the Ruhr in January 1923 to seize the goods and the output directly.

  5. 5

    Define passive resistance.

    Model answer

    The German government ordered workers and officials in the Ruhr to refuse all co-operation with the occupying forces, and paid the strikers' wages while the region's production stopped.

  6. 6

    Why did passive resistance produce hyperinflation?

    Model answer

    The government lost the tax revenue and output of its most productive region while paying millions of idle workers with freshly printed notes, so the money supply exploded and confidence in the mark collapsed.

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