Why did germany suffer from hyperinflation in 1923?
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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.
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The hyperinflation in Germany of 1923 could be divided in two causes, the internal and external. Both of these causes each had their own definitive effect on Germany and its economy but the external causes such as the Treaty of Versailles proved to cause a greater effect on Germany’s industry, carving industrial territory out of the Fatherland. In conclusion, the external causes had a greater effect on Germany’s economy than the inside policies did, proving that hyperinflation was largely due to the outside causes of Germany, with the internal causes having a mild effect on inflation.
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