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German inflation

German inflation. Reasons. Harsh conditions of Versailles peace treaty  Germany to pay 35 billion to France & Britain Germany could not pay war reparations German government started printing money to cover reparation payments  Hyperinflation. 1920: 1 Mark.

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German inflation

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  1. German inflation

  2. Reasons • Harshconditionsof Versailles peacetreaty Germanytopay 35 billion toFrance & Britain • Germanycould not paywar reparations • German governmentstartedprintingmoneyto cover reparation payments  Hyperinflation

  3. 1920: 1 Mark • Buys ½ dozen eggs or 450 g flour. Breadcosts1.20 Mark per loaf.

  4. January1923: 500 Marks • Buys a dozen eggs or 450 g flour. Breadcosts 700 Marks per loaf.

  5. May 1923: 500 000 Marks • Buys 18 kg meat. Breadcosts 1200 Marks per loaf.

  6. September 1923: 10 million Marks • Buys 200 g meat, 4 eggs or 1 kg potatoes.Breadcosts 2 million Marks per loaf.

  7. Oktober 1923: 1 billion Marks • Buys 300 g meat, 3 eggs or 50 g butter.Breadcosts 670 million Marks per loaf.

  8. November 1923: 100 billion Marks • November 1: buys1,3 kg meat. Breadcosts3 billion Marks per loaf.November 15: buys 2 pints ofbeer. Breadcosts80 billion Marks per loaf.

  9. Consequences • Bartering becamecommon. • Pensioners on fixed incomes suffered as pensions became worthless. • The poor became even poorer. • Middle class suffered as their hard earned savings disappeared overnight.  These people started voting for Hitler and his party.

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