Economic Impacts: Ruhr & Hyperinflation

Reparations and the Ruhr

Under the Treaty of Versailles, Germany had to pay 132 billion gold marks in reparations (payments to the victors) to the Allies. This was a huge burden and Germany found it hard to pay.

Difficulty with paying reparations

The period of 1919 to 1923 was particularly difficult for Weimar Germany, most especially because they were unable to pay their reparation instalments (fixed regular payments).
In 1922, the Weimar Republic stopped paying their reparation instalments (fixed regular payments).
- In 1923, France and Belgium retaliated by seizing the Ruhr (German region) to take what they believed Germany owed in the form of coal and other goods.

The seizing of the Ruhr

The Ruhr was the main industrial region in Germany.
- The French and Belgians took control of all factories, mines and railways in the area.
The actions of the French and Belgians were legal in the eyes of the international community because of the Treaty of Versailles.

The German reaction

In response to the seizing of the Ruhr, Ebert told German workers to go on strike. This was called ‘passive resistance’.
- But France and Belgium simply brought their own workers in to take their place.
Over 8 months, 132 people were killed and 150,000 Germans were kicked out of their homes in the Ruhr.

Hyperinflation

After the Ruhr crisis, to help pay France and Belgium quicker, the Germans printed more money. This led to hyperinflation and had disastrous effects on the economy.

Cause of hyperinflation

When money was printed, governments tied currency to a fixed value of gold.
But Weimar Germany did not have enough gold to match the amount of money it was printing.
This meant that the value of the German mark fell and that the price of goods increased rapidly.
- This caused hyperinflation (the price of everything increases extremely quickly).
Germany's war debts and the interest payments on these meant that they had debts worth 175% of their total national output (Debt: GDP of 175%). This is the same level as Greece in the Eurozone crisis.

Consequences of hyperinflation

In 1918, a loaf of bread cost 0.6 German marks. By November 1923, it cost 201 billion German marks.
As prices rose every hour, people bought goods as soon as they were paid. This meant that they carried money round in wheelbarrows.
- To get around the problem of hyperinflation, people used a barter system (trading items) instead of money.

Benefits of hyperinflation

A few people benefitted from hyperinflation.
- People with debt benefited because it was easier to pay off.
- Farmers benefited because people paid more for food.
However, it is important to remember that most people suffered because of hyperinflation.
People did not get their savings back when hyperinflation ended.

1Was the Treaty of Versailles Fair?

1.1What were the Motives and Aims at Versailles?

1.1.1The Treaty of Versailles

1.1.2Roles of Wilson, Clemenceau & George

1.2Did the Victors Get Everything They Wanted?

1.2.1The Terms: Territory

1.2.2The Terms: Reparations

1.2.3The Terms: Armaments

1.2.4The Terms: War Guilt

1.2.5The League of Nations

1.2.6French Reaction

1.2.7American Reaction

1.2.8British Reaction

1.2.9Countries Left Out of the Treaty of Versailles

1.3What was the Impact on Germany up to 1923?

1.3.1German Reaction to the Treaty

1.3.2Germany’s Allies

1.3.3Economic Impacts: Ruhr & Hyperinflation

1.3.4Social Impacts of the Treaty in Germany

1.3.5Political Impacts of the Treaty on Germany

1.3.6Reducing Reparation: The Dawes Plan

1.4Could the Treaty be Justified at the Time?

1.4.1Positives & Negatives

1.4.2Contemporary Opinions About the Treaty

2Was the League of Nations a Success?

2.1How did Weaknesses in the League Lead to Failure?

2.1.1The League of Nations

2.1.2Structure of the League: Assembly & Council

2.1.3Structure of the League: Special Commissions

2.1.4Structure of the League: Permanent Court

2.1.5Structure of the League: Secretariat

2.1.6Financial Crisis in the World

2.2The League’s Success in Peacekeeping

2.2.1Successes: International Borders

2.2.2Successes: International Agreements

2.2.3Failures: Vilna (1920)

2.2.4Åland Islands 1920-21

2.2.5Failures: Corfu 1923

2.2.6Failures: Bulgaria 1925

2.3How Important was the League's Humanitarian Work?

2.3.1Refugees, Health, Slavery, Working Conditions 1

2.3.2Refugees, Health, Slavery, Working Conditions 2

2.4How did the Depression Impact the League?

2.4.1The Great Depression, 1929

2.4.2The Manchurian Crisis, 1931

2.4.3Invasion of Abyssinia, 1935

3How did Hitler's Foreign Policy Impact the War?

3.1What were the Long-Term Consequences of Versailles

3.1.1Long-Term Consequences of Versailles

3.2What were the Consequences of the League's Failure

3.2.1The Disarmament Conference

3.2.2Collapse of the League of Nations

3.2.3Tension in Europe in the 1930s

3.2.4WWII & Failure of the League of Nations

3.2.5Weak Nations

3.3Was the Policy of Appeasement Justified?

3.3.1The Spanish Civil War, 1936-39

3.3.2The Sudetenland

3.3.3Arguments for Appeasement

3.3.4Arguments Against Appeasement

3.3.5Reasons & Acts of Appeasement

3.3.6Impact of Appeasement

3.4How Important was the Nazi-Soviet Pact?

3.4.1The Nazi-Soviet Pact

3.4.2The Polish Crisis & the Outbreak of War

3.5Why did Britain & France Declare War on Germany?

3.5.1The Guarantee for Poland and the War

3.5.2Hitler’s Foreign Policy & Rearmament

3.5.3Hitler's Plan

3.5.4The Saar

3.5.5Remilitarisation of the Rhineland

3.5.6The Rome-Berlin Axis

3.5.7Germany & Italy in the Spanish War

3.5.8The Anti-Comintern Pact

3.5.9Anschluss with Austria

3.5.10The Munich Agreement

3.5.11The Crisis over Czechoslovakia

4Who was to Blame for the Cold War?

4.1Why did the US-Soviet Alliance Break Down?

4.1.1Cold War - Definition

4.1.2The Grand Alliance

4.1.3The Tehran Conference, 1943

4.1.4The 1945 Summit Conferences

4.1.5Early US-Soviet Relations

4.1.6The Breakdown of the US-Soviet Alliance

4.1.7US & Soviet Attitudes to Peace

4.2How did the USSR Gain Control of Easter Europe?

4.2.1The USSR & Eastern Europe

4.2.2Attitudes of Truman & Stalin

4.3How did the US React to Soviet Expansionism?

4.3.1The Beginning of the Cold War

4.3.2The Truman Doctrine & Marshall Plan

4.3.3East-West Boundaries

4.4What were the Consequences of the Berlin Blockade?

4.4.1Germany

4.4.2Bizonia

4.4.3Berlin Blockade

4.4.4FRG & GDR

4.5Who was More to Blame for Starting the Cold War?

4.5.1NATO

4.5.2Warsaw Pact

4.5.3The Responsibility for Cold War Tensions

4.5.4Blame on the USRR

4.5.5Blame on the US

4.5.6Sharing the Blame

5Did the US Contain the Spread of Communism?

5.1The US and Korea, 1950-53

5.1.1The US and Korea: Background to the Crisis

5.1.2The Korean War

5.1.3The Course of the Korean War

5.2The US and Cuba, 1959-62

5.2.1Build-Up to the Cuban Missile Crisis

5.2.2The Cuban Missile Crisis

5.2.3Consequence of the Cuban Missile Crisis

5.3The US and Vietnam, 1955-75

5.3.1French Rule in Vietnam

5.3.2President Eisenhower

5.3.3President Kennedy

5.3.4The Gulf of Tonkin Incident, 1964

5.3.5US Tactics

5.3.6Vietcong Tactics

5.3.7The Vietcong

5.3.8The My Lai Massacre, 1968

5.3.9Vietnamisation

5.3.10The Tet Offensive, 1968

5.3.11Attacks on Cambodia & Laos

5.3.12The Bombing of North Vietnam

5.3.13The Failure of Vietnamisation

5.3.14The Growth of Opposition

5.3.15The Draft System

5.3.16The Kent State University Shootings, 1970

5.3.17Political Opposition

5.3.18Reasons for Support 1

5.3.19Reasons for Support 2

5.3.20Political Support

5.3.21Peace Negotiations

5.3.22The Paris Peace Accords, 1973

5.3.23Economic & Human Costs 1

5.3.24Economic & Human Costs 2

5.3.25The Strengths of North Vietnam 1

5.3.26The Strengths of North Vietnam 2

5.3.27The Weaknesses of the US 1

5.3.28The Weaknesses of the US 2

5.3.29Opposition in the US

5.3.30Reasons Why USA Lost

6How was USSR's Control Over Eastern Europe?

6.1Opposition to Control in Hungary & Czechoslovakia

6.1.1Causes of Opposition

6.1.2The Hungarian Uprising & U2 crisis

6.1.3The U2 Crisis

6.1.4Czechoslovakia, 1968

6.1.5Reaction to Brezhnev

6.2Similarities Between Hungary & Czechoslovakia

6.2.1Hungary and Czechoslovakia 1

6.2.2Hungary & Czechoslovakia 2

6.3Why was the Berlin Wall Built?

6.3.1The Berlin Wall 1

6.3.2The Berlin Wall 2

6.4Solidarity in Poland & Soviet Influence

6.4.1Solidarity in Poland and Other Developments

6.5Gorbachev's Responsibility

6.5.1Reagan & Gorbachev

6.5.2Reagan and the ‘Second Cold War’

6.5.3The Collapse of Soviet Control

6.5.4The Collapse of the USSR

Jump to other topics