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Inflation in Germany  

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Inflation in Germany: Exam style questions a) One can learn a lot about how the inflation affected the German prices in the years 1918-23 by looking at Source A. It informs us on the prices of a loaf of bread. It shows the price increase by 100 marks from 1918-1922 as a result of inflation. Germany could not afford the reparations bill imposed on them by the Allies and the cost of passive resistance in the Ruhr, and this situation worsened in 1923 when the German government had to result to printing more money. This resulted in Hyper Inflation and this deemed the German mark worthless. This is shown in Source A as by November 1923 a loaf of bread costs 201 billion marks. If this is the price for bread then other products must be even more. Although Source A only shows the dramatic increase of the price of bread...

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