History Paper 2.docx - The Experience of Hyperinflation in Weimar Germany History 101D Paper 2 V00849730 1 It was the end of war Countries were coming

History Paper 2.docx - The Experience of Hyperinflation in...

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The Experience of Hyperinflation in Weimar Germany History 101D: Paper 2 V00849730 November 26, 2015 1
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It was the end of war. Countries were coming together as a nation, and celebrating for peace. It was a totally different story for Germany. By going through the primary sources, it gives readers an overview on how hyperinflation and everything that’s going on with the economy in Germany is worse than what we could think of. A huge burden was put on Germany as the Allies charged Germany with reparation costs at a whopping 132 billion gold marks. At the end of war, the reparations were pretty much compensations for the victorious side. “Germany was told to make reparations for all the damage done to the civilian population of the Allies and to their property by the aggression of Germany by land, by sea and from the air.” 1 One of the biggest factors that affected the hyperinflation was the Treaty of Versailles. At this time, the exchange rate of the Mark had declined from 4.2 marks to 8.9 marks per US dollar, and at the end of 1919, the currency had fallen to 32 Marks per US dollar. The currency declining didn’t stop here. During the first half of 1922, the Mark stabilized at a whopping 320 Marks per US dollar. After several years, the German currency dropped to 4.2 trillion marks per US dollar. Printing paper marks did not contribute to Germany’s debts to its allies in any way, since the payments or debts had to be in gold. Putting that aside, Germany still had more reasons to print more Marks. 3 Printing more Marks would result in paying off internal debts from the expanding fiscal policies, an increase in employment rates, and increase in economic growth.
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  • Fall '08
  • Adolf Hitler, Weimar Republic, World War I reparations

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