Question

Why did Germany suffer from hyper inflation in 1923

Answer 1

Hyperinflation

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.   Prices spiralled out of control and people with savings and fixed incomes lost everything.

        Anger at foreigners, and at the rich profiteers who made their fortunes from the hyperinflation, added to the support of extreme political parties such as the fascists and the communists.

Answer 2

Germany suffers from hyperinflation in 1923 when the Weimar government reprinted banknotes to pay payments.

Explanation:

• After World War I, Germany was experiencing an increase in price.
• The growing debt after agreeing to the Treaty of Versailles was the reason for the disorder in the country.
• To pay the reparations to the Allies, the German government printed more money.
• The printing of money led to hyperinflation as the vale of printed money lessen with the prices rose of goods.

Learn More:

What was the crisis in Germany which came to be known as hyper inflation?

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