1.3.3

Economic Impacts: Ruhr & Hyperinflation

Test yourself on Economic Impacts: Ruhr & Hyperinflation

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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

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 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

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

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

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

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.

1

Was the Treaty of Versailles Fair?

1.1

What were the Motives and Aims at Versailles?

1.1.1The Treaty of Versailles 1.1.2Roles of Wilson, Clemenceau & George

1.2

Did 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

1.3

What 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

1.4

Could the Treaty be Justified at the Time?

1.4.1Positives & Negatives 1.4.2Contemporary Opinions About the Treaty

2

Was the League of Nations a Success?

2.1

How 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

2.2

The 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

2.3

How Important was the League's Humanitarian Work?

2.3.1Refugees, Health, Slavery, Working Conditions 1 2.3.2Refugees, Health, Slavery, Working Conditions 2

2.4

How did the Depression Impact the League?

2.4.1The Great Depression, 1929 2.4.2The Manchurian Crisis, 1931 2.4.3Invasion of Abyssinia, 1935

3

How did Hitler's Foreign Policy Impact the War?

3.1

What were the Long-Term Consequences of Versailles

3.1.1Long-Term Consequences of Versailles

3.2

What 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

3.3

Was 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

3.4

How Important was the Nazi-Soviet Pact?

3.4.1The Nazi-Soviet Pact 3.4.2The Polish Crisis & the Outbreak of War

3.5

Why 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

4

Who was to Blame for the Cold War?

4.1

Why did the US-Soviet Alliance Break Down?

4.1.1Cold War - Definition 4.1.2The Grand Alliance 4.1.3The 1945 Summit Conferences 4.1.4Early US-Soviet Relations 4.1.5The Breakdown of the US-Soviet Alliance 4.1.6Attitudes of Truman & Stalin 4.1.7US & Soviet Attitudes to Peace

4.2

How did the USSR Gain Control of Eastern Europe?

4.2.1The USSR & Eastern Europe

4.3

How 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 4.3.4Berlin Crisis

4.4

What were the Consequences of the Berlin Blockade?

4.4.1Germany 4.4.2Bizonia 4.4.3Berlin Blockade 4.4.4FRG & GDR 4.4.5NATO 4.4.6Warsaw Pact

4.5

Who was More to Blame for Starting the Cold War?

4.5.1The Responsibility for Cold War Tensions 4.5.2Blame on the USRR 4.5.3Blame on the US 4.5.4Sharing the Blame

5

Did the US Contain the Spread of Communism?

5.1

The 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

5.2

The 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

5.3

The 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

6

How was USSR's Control Over Eastern Europe?

6.1

Opposition to Control in Hungary & Czechoslovakia

6.1.1Causes of Opposition 6.1.2The Hungarian Uprising 6.1.3Czechoslovakia, 1968 6.1.4Reaction to the Brezhnev Doctrine

6.2

Similarities Between Hungary & Czechoslovakia

6.2.1Hungary and Czechoslovakia 1 6.2.2Hungary & Czechoslovakia 2

6.3

Why was the Berlin Wall Built?

6.3.1The Berlin Wall 1 6.3.2The Berlin Wall 2 6.3.3The U2 Crisis

6.4

Solidarity in Poland & Soviet Influence

6.4.1Solidarity in Poland

6.5

Gorbachev'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

1

Was the Treaty of Versailles Fair?

1.1

What were the Motives and Aims at Versailles?

1.1.1The Treaty of Versailles 1.1.2Roles of Wilson, Clemenceau & George

1.2

Did 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

1.3

What 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

1.4

Could the Treaty be Justified at the Time?

1.4.1Positives & Negatives 1.4.2Contemporary Opinions About the Treaty

2

Was the League of Nations a Success?

2.1

How 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

2.2

The 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

2.3

How Important was the League's Humanitarian Work?

2.3.1Refugees, Health, Slavery, Working Conditions 1 2.3.2Refugees, Health, Slavery, Working Conditions 2

2.4

How did the Depression Impact the League?

2.4.1The Great Depression, 1929 2.4.2The Manchurian Crisis, 1931 2.4.3Invasion of Abyssinia, 1935

3

How did Hitler's Foreign Policy Impact the War?

3.1

What were the Long-Term Consequences of Versailles

3.1.1Long-Term Consequences of Versailles

3.2

What 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

3.3

Was 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

3.4

How Important was the Nazi-Soviet Pact?

3.4.1The Nazi-Soviet Pact 3.4.2The Polish Crisis & the Outbreak of War

3.5

Why 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

4

Who was to Blame for the Cold War?

4.1

Why did the US-Soviet Alliance Break Down?

4.1.1Cold War - Definition 4.1.2The Grand Alliance 4.1.3The 1945 Summit Conferences 4.1.4Early US-Soviet Relations 4.1.5The Breakdown of the US-Soviet Alliance 4.1.6Attitudes of Truman & Stalin 4.1.7US & Soviet Attitudes to Peace

4.2

How did the USSR Gain Control of Eastern Europe?

4.2.1The USSR & Eastern Europe

4.3

How 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 4.3.4Berlin Crisis

4.4

What were the Consequences of the Berlin Blockade?

4.4.1Germany 4.4.2Bizonia 4.4.3Berlin Blockade 4.4.4FRG & GDR 4.4.5NATO 4.4.6Warsaw Pact

4.5

Who was More to Blame for Starting the Cold War?

4.5.1The Responsibility for Cold War Tensions 4.5.2Blame on the USRR 4.5.3Blame on the US 4.5.4Sharing the Blame

5

Did the US Contain the Spread of Communism?

5.1

The 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

5.2

The 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

5.3

The 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

6

How was USSR's Control Over Eastern Europe?

6.1

Opposition to Control in Hungary & Czechoslovakia

6.1.1Causes of Opposition 6.1.2The Hungarian Uprising 6.1.3Czechoslovakia, 1968 6.1.4Reaction to the Brezhnev Doctrine

6.2

Similarities Between Hungary & Czechoslovakia

6.2.1Hungary and Czechoslovakia 1 6.2.2Hungary & Czechoslovakia 2

6.3

Why was the Berlin Wall Built?

6.3.1The Berlin Wall 1 6.3.2The Berlin Wall 2 6.3.3The U2 Crisis

6.4

Solidarity in Poland & Soviet Influence

6.4.1Solidarity in Poland

6.5

Gorbachev'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

Practice questions on Economic Impacts: Ruhr & Hyperinflation

Can you answer these? Test yourself with free interactive practice on Seneca — used by over 10 million students.

1
How many Germans were removed from their homes during the seizing of the Ruhr?Multiple choice
2
Postwar Problems for GermanyPut in order
3
What was the German state formed after the Kaiser widely known as?Multiple choice
4
Timeline of HyperinflationPut in order
5
How did people try to get around the problem of hyperinflation?Multiple choice

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Germany’s Allies

Social Impacts of the Treaty in Germany