How Germany came into the trap of Hiper Infation Situation? How were they saved?
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many paper money were printed and were in rotation. as they had more no. of . currency , the value of german mark fell, which resulted in hyperinflation. it was saved by dawes plan, which was introduced by U.S.A
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1. Germany largely fought the war on short term loans, so they replayed in the form of gold. This depleted them of their gold reserves.
2. After a few months of paying, when Germany refused to pay, the French occupied Germany's leading industrial area, Ruhr.
3. Germany retaliated with printing too many notes. With many notes in circulation, the value of the German mark fell.
4. Finally, America bailed Germany out of hyperinflation with the introduction of the Dawes Plan, which eased the burden of the loans on Germany.
Cheers!!
2. After a few months of paying, when Germany refused to pay, the French occupied Germany's leading industrial area, Ruhr.
3. Germany retaliated with printing too many notes. With many notes in circulation, the value of the German mark fell.
4. Finally, America bailed Germany out of hyperinflation with the introduction of the Dawes Plan, which eased the burden of the loans on Germany.
Cheers!!
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