What was hyperinflation? Did hyperinflation undermine Weimar democracy in 1923? C aim – to define hyperinflation and explain its causes and impacts B aim - to explain hyperinflation, its causes and impacts, and how much of a threat it was to the Weimar democracy A aim - to explain hyperinflation, its causes and impacts, and whether it undermined the Weimar democracy What was hyperinflation? If have not studied this before write down what you think it was. Use this chart to help you. If you have studied this before write an accurate definition.

What caused inflation? WWI – high government expenditure and low income. Growing budget deficit. Printed and borrowed money. Able to maintain government expenditure which meant welfare could be paid and the government were popular. Inflation started to grow, initially this encouraged investors to invest, profits to increase, and economic growth. After WWI, the government continued to print money. It also helped them to pay compensation to war victims, pay peoples wages, provide credit to industry which helped maintain full employment and compensate people who lost land in the Treaty of Versailles. They did not do this to meet reparation payments as these were payable in gold or goods. They did hope that continued inflationary problems may encourage the allies to lower their demands for reparations. By 1923 300 paper mills and 2000 printing firms, including newspaper printing firms were working 24 hour shifts to print enough money.

What caused hyperinflation? Crisis hit in 1923. January 1923 60,000 French troops invaded the Ruhr and took control of all industries and railways to seize goods after reparations payments weren’t met. The government lost some economic resources, which meant they had less goods to support their currency. The government called for passive resistance funded by the government. No-one should cooperate. Revenues to the government fell from the Rhineland and the Ruhr and welfare payments increased. Collapse in confidence from abroad. Hyperinflation hit. https://www.youtube.com/watch?v=UD3Vk4rczZ0

What impact did it have on people’s daily lives? Use sources 2.18, 2.19 and 2.22 to write down what impacts hyperinflation had on people’s daily lives.

What impact did hyperinflation have on different groups in society? Use the main text on pp. 46-47 to make a list of groups in society and the impact that hyperinflation had on them.

How did the inflationary crisis end?

What impact did hyperinflation have? Write down the impacts that hyperinflation had.

Roua, Guled – define hyperinflation, explain its causes and impacts. Did hyperinflation undermine Weimar democracy in 1923? C aim – to define hyperinflation and explain its causes and impacts B aim - to explain hyperinflation, its causes and impacts, and how much of a threat it was to the Weimar democracy A aim - to explain hyperinflation, its causes and impacts, and whether it undermined the Weimar democracy Roua, Guled – define hyperinflation, explain its causes and impacts. Assay - explain hyperinflation, its causes and impacts, how much of a threat it was to the Weimar democracy. Dina, Hamid, Timur, Legjende - explain hyperinflation, its causes and impacts, whether it unermined Weimar democracy.

Knowledge Test

Homework – due Thursday 22nd January Using pp. 72-77 prepare for either of the following. Weimar Germany enjoyed a strong economic recovery from hyperinflation. Weimar Germany struggled to recover from hyperinflation.