Hyperinflation & the Ruhr invasion : Germany

The hyperinflation crisis of 1922-23 was caused in large part by the Weimar government printing
banknotes to pay striking workers in the occupied Ruhr. 2. By mid-1923, the printing of these
banknotes, which were not backed by gold, was causing a rapid increase in both prices and
wages .During that time one trillion mark was equal to one dollar . A wheelbarrow full of
money would not even buy a newspaper. Most Germans were taken by surprise by the
financial tornado.With the French and Belgian occupation of the Ruhr, goods in Germany
became even more difficult to obtain, and therefore very expensive. To fix this problem
and pay the striking Ruhr workers, the government again printed more money. This led to
hyperinflation .

The occupation of the Ruhr was done by France and Belgium troops in response to lack
of payment of reparations . The exponential price rise made it difficult to obtain even
basic goods like bread, meat, and coal to heat homes. Pay received one day was often
worthless the next.