1. Inflation and hyper inflation Stresemann and currency stabilisation US investment and economic recovery and growth

2. Connector

3. Outcomes
All to understand the causes of hyperinflation/role of Stressman/ US investment and economic growth
Most to present information to rest of group
Some to do this with support

4. Input
Hyperinflation= A period of rapid inflation that leaves a country's currency virtually worthless
What would be the cause of hyperinflation

5. Task Choose Inflation and hyper inflation
Stresemann and currency stabilisation
US investment and economic recovery and growth
The different governments of the Weimar Republic

6. Task Research today Present to rest of group on Wednesday/Thursday
slides to Mr Bolt

7. Use the following
Class Textbooks
Internet
Library resources

8. Reparations 1919-21- 23 conferences about paying reparations
1921 the figure set at 226, gold marks
Germans said this was excessive- French said NON! And instead invaded the parts of the Ruhr,
Reduced to 132 milliard in May 1921 (2000 million a year). If they did not pay French would occupy rest of Ruhr.

9. The government resign and new government led by Wirth accept the terms and in order to pay the first instalment- GET A LOAN- the policy of FULFILMENT
In 1919 Germanys debt was 144 milliard marks, by 1922 it had risen to 469 milliard
There was no balancing budget and no currency reforms this led to hyperinflation
In 1922 they asked to suspend reparations but French said NON! And instead demanded “production guarantees” (goods)
Instead of this the German printed more money, which was the Allies saw Germany sabotaging payments
In 1922 government faced financial disaster as Germany had also failed to provide coal and timber.

10. August- Gustav Stresemen became chancellor
Ruhr Crisis- in 1923 Jan troops from France and occupied the Ruhr, German workers met them passive resistance, so the French replaced them with their own.
The Germans reduced the amount of coal they had to pay but, had to millions of marks in compensation to those that had lost business due to occupation, and they also lost TAX revenue
Therefore they PRINTED MORE MONEY- August billion marks in circulation and the currency collapses as did the economy.
August- Gustav Stresemen became chancellor
September reparations are resumed
Nov 1923 – RETENMARK- new currency, limited printing, secured against assets in industry and agriculture civil servants (cutting servant)
RETENBANK is opened and SCHACHT was appoited Currency Commissioner

11. Read red book and take notes
Take notes from pages using the subheadings