6. Hyperinflation

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What were Inflation and hyper-inflation? / What caused Hyper inflation?

Inflation is the process of events when people have less money. The government was printing vast quantities of money for the reparations, so the public increase the price of their produce which means that the government has to print off even more money, and the producers make the prices even higher. The rapid acceleration of this is referred to as hyperinflation. In four years, a loaf of bread rose from one mark to 100,000.

Who was affected by hyperinflation, and how?

Positively, hyperinflation aided farmers, as the producers of raw food materials, they simply received more money, despite having to pay more for other things. Moreover, businesses could afford to pay off loans, as they were now losing value. Negatively, everyone was affected because the foreign exchange rate became ridiculous, which reduced imports greatly. This led to less food. In addition to this, people had huge wheelbarrows of money as it's value was so low. The situation reached a climax in which it became more cost efficient to burn money than spend it, and swap goods for other goods, Moreover, savings became completely useless.

hyperinflation

when the gov prints off money which it does not have the value of money goes down and the prices go up, people turned to beggars as their pensions and savings lost all value, blamed weimar for agreeing with treaty


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