Question

what do you understand by hyperinflation? why did germany suffer from hyperinflation in 1923?
(5marks)

Answer 1

Summary. Hyperinflation probably happened because the Weimar government printed banknotes to pay reparations and - after the 1923 French invasion - the Ruhr strikers. Because these banknotes were not matched by Germany's production, their value fell.

Answer 2

monetary inflation occurring at a very high rate is called hyperinflation.
Germany found itself unable to make reparations payments. ... Inflation was exacerbated when workers in the Ruhr went on a general strike and the German government printed more money to continue paying for their passive resistance. By November 1923, the US dollar was worth 4,210,500,000,000 German marks.