Question

What is hyperinflation?Why did it occur in germany in 1923

Answer 1

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.

It certainly upset many Germans. It led to the invasion of the Ruhr by the French and Belgium's in 1923 which led to passive resistance and ultimately hyperinflation and the losses suffered by savers and pensioners for example who lost virtually everything and made the Weimar Government more unpopular.

Answer 2

Hyperinflation is a term used to describe the rise of the prices of goods and services than an average person.

Explanation:

• Hyperinflation occurred in 1923 when German was not able to pay the reparations requited by the Treaty of Versailles.
• Belgium and France troops captured Ruhr, which was German's industrial centre for the production of coal, steel, and iron.
• Many of the towns in the Ruhr came up with heavy industries. The occupation of France and Belgium in Ruhr led to a collapse of the German economy.
• There was heavy inflation in the country with increasing unemployment.

Learn More:

Explain the economic crisis in Germany(1923).​

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