Explain the impact on germany of her refusal to pay war compensation in 1923
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- The French occupied Ruhr, the leading industrial and mineral dominating area.
- Germany retaliated with passive resistance and printed paper currency recklessly. With too much printed money in circulation, the value of the German Mark fell drastically.
- Due to the fall in the value of Mark prices of goods soared and Germany fell into hyperinflation situation.
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