postwar problems-german inflation objective: assess the global impact post-wwi economic...
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Postwar Problems-German Inflation
Objective: Assess the global impact post-WWI economic turmoil—Worldwide Depression
Loss of life was not the only cost of World War I.The loss property and the tremendous costs of
fighting the war led to financial collapse.Most the nations of Europe were economically
devastated by the conflict. The nation that suffered the most was Germany.
Smashed grocery store windows in hungry Berlin - 1919
Besides loss of life, what were other costs associated with WWI?
What did these costs lead to?Which nation suffered the most?
During the war, Germany had simply printed more money to finance its war efforts.
Terms of the Treaty of Versailles added to the debt it had incurred by this measure.
The reparations Germany owed the Allies increased its economic woes.
By the early 1920s, its economy had collapsed.
To pay its debts, the German government printed even more paper money.
How did Germany deal with paying for the war effort?
What document contributed to Germany’s debt?
What part of this document specifically increased Germany’s economic problems?
How did Germany deal with paying its debts?
This caused inflation (a steady rise in prices).
Money became worthless.Wheelbarrows full of paper
money were necessary to purchase basic necessities.
American loans and investments helped somewhat to improve the German situation.
German children
use stacks of
money as
building blocks
during the 1923
inflation.
Postwar Problems
German inflation
in the 1920s:
woman burning
worthless
banknotes (paper
money) for fuel
By printing more money, this caused what in Germany?
What is inflation?What happened to money?How much money did it cost to purchase basic necessities?
What are two examples of how much money is worth (valued) in Germany post-WWI?