Hyperinflation Lesson starter Copy the paragraph below In

Hyperinflation Lesson starter: Copy the paragraph below. In 1922 Germany fell behind with their reparations payments. This caused France and Belgium to enter the Ruhr region of Germany and take goods like steel and coal. There were many shortages. Prices went up. The Weimar government took the decision to print more banknotes as a short term ‘solution’.

Vocabulary INFLATION when prices rise HYPERINFLATION When prices rise very quickly, in a way that is out of control

Today we will… • Understand why hyperinflation occurred in Germany • Identify the problems it created • Create the solution to hyperinflation

• As we know, the Ruhr Crisis left shortages in Germany as people refused to work • This made prices rise (inflation) • The Weimar Government printed off more money to try and help this • This was disastrous for Germany Ebert

This table shows how much a US dollar could be purchased for in Germany 1 US DOLLAR ($) Deutschemarks (DM) 1922 400 Feb 1923 7000 August 1923 1, 000 November 1923 130, 000, 000

Observation skills • You will see some pictures which show the effects of hyperinflation in Germany • Write down what you see in each picture

Effects of Hyperinflation • Savings and pensions became worthless – middle class affected most • Those with a set salary (like teachers) earned practically nothing • Prices went up a few times a day so workers had to be paid several times a day and spend wages immediately • People physically couldn’t carry enough money about to buy goods • Poverty, starvation and unemployment increased • People started ‘bartering’ or trading goods rather than cash

Who was to blame? • Imagine you were a war veteran or war widow in 1923. • Your set pension is now worthless and you are left with nothing • How would you feel? Who would you hold responsible? Vote for me and I will return Germany to a booming economy. We will be a financial superpower again.

A solution to Hyperinflation? 1. 2. 3.

How did Hyperinflation end? 1. A new chancellor Gustav Stresseman was appointed 2. America gave Germany loans through the Dawes Plan to rebuild their economy 3. The French left the Ruhr in 1924 4. A new currency, the Rentenmark, was

N 5 Explain Question 1. Explain how hyperinflation in 1923 affected the lives of German citizens. 6 marks Guide for Explain Qs - Always worth 6 marks so you must give 6 detailed points, using the words of the question. - Each point MUST go in a new sentence. - Each point you make must be RELEVANT

Today we will… • Understand why hyperinflation occurred in Germany • Identify the problems it created • Understand the solution to hyperinflation