German inflation

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

Reasons

Buys ½ dozen eggs or 450 g flour.

Bread costs 1.20 Mark per loaf.

1920: 1 Mark

Buys a dozen eggs or 450 g flour.

Bread costs 700 Marks per loaf.

January 1923: 500 Marks

Buys 18 kg meat.

Bread costs 1200 Marks per loaf.

May 1923: 500 000 Marks

Buys 200 g meat, 4 eggs or 1 kg potatoes.

Bread costs 2 million Marks per loaf.

September 1923: 10 million Marks

Buys 300 g meat, 3 eggs or 50 g butter.

Bread costs 670 million Marks per loaf.

Oktober 1923: 1 billion Marks

November 1: buys 1,3 kg meat. Bread costs 3 billion Marks per loaf.November 15: buys 2 pints of beer. Bread costs 80 billion Marks per loaf.

November 1923: 100 billion Marks

Bartering became common. 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.

Consequences