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Germany and West Germany, 1918–89

Reacting to economic challenges, 1918–32

  • 3 things to know
  • Paper 1

Overview

Recall questions on hyperinflation and who lost by it, the Rentenmark, the Dawes and Young Plans, the Ruhr occupation, and Bruning's deflation.

What you need to know

Answer each one before you reveal it.

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Key term

What was the Dawes Plan of 1924?

Who and when

Why did Germany suffer hyperinflation in 1923?

Key term

Who suffered and who gained from hyperinflation?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    Why did the 1929 Depression hit Germany so hard?

    Model answer

    Its recovery depended on US loans, which were recalled, causing unemployment to rise above six million by 1932.

  2. 2

    What was the Dawes Plan of 1924?

    Model answer

    An agreement that rescheduled reparations and brought large US loans to stabilise the German economy.

  3. 3

    Why did Germany suffer hyperinflation in 1923?

    Model answer

    War debts financed by borrowing, reparations, and the printing of money to fund passive resistance during the Ruhr occupation destroyed the currency.

  4. 4

    Who suffered and who gained from hyperinflation?

    Model answer

    Savers, pensioners and creditors were ruined; debtors, including the state, and owners of property and foreign currency gained.

  5. 5

    How was the hyperinflation ended?

    Model answer

    Stresemann ended passive resistance and introduced the Rentenmark in November 1923, backed nominally by land, followed by the Reichsmark in 1924.

  6. 6

    What was the significance of the Ruhr occupation?

    Model answer

    French and Belgian troops occupied the industrial heartland in 1923 over reparations, and German passive resistance destroyed production and the currency together.

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AThe government admitted 96 dead and 333 wounded.
BOther estimates run to several hundred dead.
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