Question

Why did germany suffer from hyperinflation in 1923? (6 marks)

Answer 1

Answer:

Hyperinflation happened in Germany in 1923 when the Weimar government printed banknotes to pay reparations. Explanation: Germany was previously experiencing inflation due to the war and the increasing government debt because of the Treaty of Versailles.

Answer 2

Answer:

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.