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 other products would increase in price also. You can learn that simple everyday products could not even be bought due to the hyper inflation.

b)  Source B and C both suggest different states of the German economy. Source B is a German view of inflation. It portrays Germany as defenceless woman with absolutely nothing in the means of material objects. When French and Belgian troops marched into the Ruhr, Germany’s most industrial region, the Germans in the Ruhr refused to work. This so called passive resistance was in effect making Germany even poorer. The Source gives the impression that the Allies have abandoned Mother Germany and have taken everything she’s got. All they have left her is a Mark with which to cover her nakedness. The fact that the Mark does not completely cover her nakedness represents how useless the Mark was at that period. This source was published in 1923 when inflation was at its peak. Source B shows that the German economy is failing incredibly.  Germany does not have anything except for the Mark which is worthless. Source C states that Germany is teeming with wealth and prosperity. This was written in 1920 by a British newspaper when inflation in Germany was not that serious. However poverty was not non-existent as suggested by the source. It states that Germany will not pay reparations regardless of its wealth and thriving economy. The source portrays the Germans as actors and that their economic situation is fine and that they are just acting so they do not have to pay the bill. Even though the two sources are written at different times they both give exaggerated views on the situation.

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c) It is open to opinion as to whether or not Source C is useful to a historian studying the state of German economy in the early 1920s. However the source was written in 1922 but it delivers a description that would better suit the situation in 1920. The German economy was worse than stated in Source C. In 1922 there were 400 Marks to the US dollar as a result of inflation. This was a huge loss for Germany and meant the economy was going down hill. Source C fails to mention this important fact. Its main purpose ...

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