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allochka39001 [22]
3 years ago
12

HELPPPPP

History
1 answer:
EleoNora [17]3 years ago
5 0

Answer:

1.) After World War I the mark collapsed as Germany suffered from hyperinflation. To stem currency instability and to stabilize the economy, the gold mark was replaced by the Rentenmark in 1924, at which time a U.S. dollar was worth 4.2 billion marks.

2.) After the November Revolution of 1918, the Peace Treaty of Versailles in 1919 committed Germany to pay reparations to the victorious powers (especially to France). German reparations had to be paid in goldmark, foreign exchange and tangible goods and were therefore not affected by inflation. In January 1920, the mark had only a tenth of its August 1914 exchange rate against the US dollar.

Because the Reich government was no longer able to pay the reparations in an appropriate amount or to provide compensation in the form of economic goods, the Ruhr was occupied by French and Belgian troops. The German government under Chancellor Wilhelm Cuno called for a" Ruhrkampf", a passive resistance against the military occupation. In order to keep the strikers happy, corresponding financial aid was paid out to them – in a mark that was devalued more and more rapidly by the increase in money operated by the government. This marked the beginning of the months of hyperinflation that followed generations of Germans as an example of the horrors of inflation. The depreciation against the US dollar multiplied more and more rapidly until, in November 1923, the price for a US dollar equaled 4.2 trillion marks.

3.) Because of the Economic Disaster Hitler came to power and WW2 happened. 92 Years after the end of the First World War, Germany pays the last instalment for its war debt.

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