How did hyperinflation affect the German economy?
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Hyperinflation. Germany was already suffering from high levels of inflation due to the effects of the war and the increasing government debt. 'Passive resistance' meant that whilst the workers were on strike fewer industrial goods were being produced, which weakened the economy still further.
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This ruined Germany's economy, damaged by the war, and led to the hyperinflation of 1923. Remember economic might of Germany been stretched to limits during the war. She had reconstruct her own economy at the same time as paying Reparations.
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