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:warning: Hyperinflation :warning:, Price of bread was 4.6 million marks…
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Hyperinflation
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Build Up
In November 1922 France invaded the Ruhr, an industrial area in Germany, after it didn't pay the reparations it owed.
After the first reparation payment Germany had no more money to pay, but France didn't believe them
Consequences
To pay the workers in the Ruhr who were on strike Germany started printing more and more money.
This made the value of money drop all the time. Printing money also brought hyperinflation. By autumn 1923 it cost more to print a note than the price of the note.
General Strike
After the invasion, the German government asked the workers in the Ruhr to go on a general strike.
They stopped their production and started a passive resistance.
France was very angry with the Germans and they expelled and killed workers in the Ruhr. At this moment Germany was suffering from high inflation.
Location
Germany
Winners
Borrowers such as businessmen and people mortgages
People on wages were relatively safe
Farmers
Looser
People on fixed incomes
People with saving and those who had lent money
Year
1922-1923
Price of bread was 4.6 million marks
