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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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Reasons • Harshconditionsof Versailles peacetreaty Germanytopay 35 billion toFrance & Britain • Germanycould not paywar reparations • German governmentstartedprintingmoneyto cover reparation payments Hyperinflation
1920: 1 Mark • Buys ½ dozen eggs or 450 g flour. Breadcosts1.20 Mark per loaf.
January1923: 500 Marks • Buys a dozen eggs or 450 g flour. Breadcosts 700 Marks per loaf.
May 1923: 500 000 Marks • Buys 18 kg meat. Breadcosts 1200 Marks per loaf.
September 1923: 10 million Marks • Buys 200 g meat, 4 eggs or 1 kg potatoes.Breadcosts 2 million Marks per loaf.
Oktober 1923: 1 billion Marks • Buys 300 g meat, 3 eggs or 50 g butter.Breadcosts 670 million Marks per loaf.
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.
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.