History, asked by namanmalik4115, 1 year ago

what were the factors that led to hyperinflation in germany

Answers

Answered by STORMSUNIL
56
Treaty of Versailles
World war I destruction
Spend money for Self defence
Unemployment
Narrow nationalism
Answered by Priatouri
80

The following are the causes for the hyperinflation in Germany:

1. The treaty of Versailles: the Republic which already carried the burden of war guilt was financially disabled by forcing to pay compensation and signing the humiliating treaty of Versailles.

2. The economic crisis hit Germany badly. A total of 40 per cent of the industrial production decreased in Germany.

3. As many as six million people lost their jobs. As a result of these widening unemployment workers in the streets could be seen with posters depicting, "Willing to do any work".

4. In lack of jobs, the youth of the country turned to criminal activities.  

5. Slowly and steadily the savings of salaried workers went out and currency lost its value.

All these causes contributed to emerging the hyperinflation in the country.

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