HISTORY
THE WORLD BETWEEN THE WARS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Imperialism
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Elimination of political parties by the Treaty of Versailles
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Repartions
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Inflation
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Detailed explanation-1: -Germany was already suffering from high levels of inflation due to the effects of the war and the increasing government debt. ‘Passive resistance’ meant that whilst the workers were on strike fewer industrial goods were being produced, which weakened the economy still further.
Detailed explanation-2: -With too much printed money in circulation, the value of the German Mark fell. As a result, prices of goods soared. The image of Germans carrying cartloads of currency notes to buy a loaf of bread was widely publicised. This crisis came to be known as hyperinflation.
Detailed explanation-3: -In 1914, the exchange rate of the German mark to the American dollar was about 4.2 to one. Nine years later, it was 4.2 trillion to one. The out-of-control inflation began somewhat mildly during World War I, as the German government printed unbacked currency and borrowed money to finance military expenditures.