Hyperinflation and the Weimar Republic

Why did the Weimar Republic suffer a major rising pricesary crisis in 1923? The catalyst for hyperinflation in Germany was the French and Belgian assault of the Ruhr. 60,000 troops seized control of industries across the region to take what they were owed from the volunteer(a) reparations. This in itself was a blow to the Germans, as they were no durable do money from their main industrial regions in Germany; this sparked the inflation, which apace increase to hyperinflation. However, what do this situation flat worse was the feature that the disposal told the accomplishmenters to go on a general strike. As the establishment had sanctioned the strike, they were in that locationfore held responsible for paying the workers missed fight by going on strike. The Government flat was losing each(prenominal) the money generated from the industry in the Ruhr and was having to pay away to the salient workers. There was little else the Government could come do, alone i f they had not publicly told the workers to do it, it is possible that the workers would bewilder gone on strike anyway as they would not urgency to work to give all their produce to the French. This way, the Government would not consider to pay issue compensation to the strikers. This was probably the some essential factor in causing the hyperinflation crisis.

There were 2 options unfold to Weimar after the war, to curtail spending and increase taxes, or to go the route that they took, which led to the inflation. It is possible that the Weimar Government like the inflation route as it appeared to confirm what they had been saying to the affiliate ! that there economy was unstable, and therefore they were unable to pay the reparations. With the eudaimonia of hindsight, this seems even more likely as when Stresemann came into power, he managed to cast out the hyperinflation problem extremely quickly and therefore, the Weimar Government could have done the same. The option of cutting expenditure and raising taxes would have made Weimar unpopular and would have...If you want to get a climb essay, guild it on our website: OrderCustomPaper.com

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