Professional Documents
Culture Documents
Crisis Years
★ Economic disaster
➔ The treaty destabilised the Germans politically but also economically.
➔ The treaty of Versailles forced Germany to pay an amount of $6600
million pounds. This bill was announced in April 1921.
● Hyperinflation:
➔ Because of the no trade and no goods, there was no money, so the
government started printing.
➔ People soon realized that the money was worthless
➔ Prices wages were rocked
➔ Poor people suffered
➔ People who lost moat were middle class Germans as now they couldn’t buy
food as the prices were high
➔ This situation needed urgent action so in August 1923, Stressemann took
over
■ He called passive resistance to the Ruhr
■ He replaced worthless marks with new currency called the
Rentenmark
■ He renegotiated the American loans by the Dawn's Plan
■ He negotiated the reparation payments.
➔ The economic crisis was solved very quickly
➔ The hyperinflation had donde political damage to the weimar government
Golden Years