This website uses cookies to ensure you have the best experience. Learn more

Significance Of Treaty Of Versailles As A Factor In Explaining The German Hyperinflation Of 1923

890 words - 4 pages

Significance of Treaty of Versailles as a Factor in Explaining the German Hyperinflation of 1923

In 1923, Germany saw a rapid increase in inflation which reached
unprecedented levels. In January of that year, one US Dollar was equal
to 17,792 Marks, but by November a Dollar was equal to 200,000,000,000
Marks. This was the highest rate of inflation ever seen and had far
reaching social as well as economic consequences. The causes of this
"hyperinflation" have been widely debated.

Most people at the time placed the blame solely on the harsh terms of
the Treaty of Versailles. This was the treaty agreed by the allies and
Germany to end the First World War, although Germany had little say in
the matter. Germany was forced to pay reparations to the allies for
damage caused during the war. The final amount was set at £6,600m. In
order to pay this, and pay for post-war reconstruction in Germany, the
German government printed off more and more money, which in turn led
to hyperinflation. Also, some of Germany's key industrial zones were
occupied causing inflation to "spiral out of control".

However, the amount of reparations actually paid by Germany was
relatively small. It has been estimated that they paid roughly one
eighth of the total amount. Also, many of the required payments were
in goods and not actual currency. The government were almost certainly
over reacting by printed off excessive amounts of currency. The
occupation of the Ruhr in 1921, Germany's industrial heartland, cannot
be blamed for hyperinflation as inflation had been on the increase
since 1914. Geoff Layton believes that "the reparations issue should
be seen as only a minor contributory factor to the inflation." He
thinks that the blame should be placed on the government's handling of
the economy.

There is certainly a lot of evidence that the actions of the Weimar
government did little to help the economic situation in the early
1920s. Instead of raising taxes and cutting expenditure, approaches
which would be proved effective by Stresemann in 1923, they adopted a
policy of "deficit financing." They borrowed more money and printed
more currency in order to maintain public spending and avoid raising
taxes. The government's attempt to postpone payments in 1922 ended in
disaster, when the French...

Find Another Essay On Significance of Treaty of Versailles as a Factor in Explaining the German Hyperinflation of 1923

The Treaty of Versailles Essay

1185 words - 5 pages The treaty of versailles was supposed to end war and instead it turned everything to the worst causing one of the most biggest wars that took place in our history , this war is called world war II. World war II took place around 1939 to 1945. It began over germany invasion over poland and austria , the u.s wasnt yet involved until the pearl harbor was attacked. Adolf Hitler the cruel dictator of germany used his his bad powers to invade many

The Treaty of Versailles: A Complete Failure

1467 words - 6 pages treaty had a purpose that formulated to deter Germany and put an end to their menace (Palmer, Colton 688). Obviously, the treaty had failed its mission and had, by now, already provoked the next world war. While the treaty of Versailles may have provided a sense of calmness in the midst of a huge storm and solved some problems of WWI, it ended up as a huge mistake. Some problems may have gotten solved and others just avoided, but the

Was The Treaty Of Versailles A Fair Treaty? Explain

723 words - 3 pages It is difficult to decide whether the treaty of Versailles was a fair or an unfair treaty - it depends on the point of view, but I personally think that the treaty was quite harsh and unfair... The main reason why I think that this treaty was quite unfair is that Germany didn't have a say in its own future, and I think that, despite all, Germany should have had the opportunity to go to Versailles and to discuss together with all the other

Describe the Treaty of Versailles

266 words - 2 pages Big Four, who were Wilson, Georges Clemenceau, David Lloyd George and Vittorio Orlando, dew up the Treaty of Versailles. The treaty of Versailles brought about the end of World War I. This treaty was designed to humiliate the Germans and the German government was forced to sign this unfair treaty.Germany had to accept the blame for the loss and damage, which the Allied Government and their nationals have been subjected to as a consequence of the

The Treaty of Versailles Effect

1944 words - 8 pages winning, after the four long years of battle. When the war ended, the Allies formed a group called the League of Nations. They were the ones who formally call off the war between the groups. In this organization, it had been decided that there was to be special punishments to Germany, who was named as the main cause for it all. So there was a treaty established in Versailles, France. In this treaty, the League of Nations decided to establish peace

Treaty of Versailles

637 words - 3 pages signed they still had to pay and payed in 1921 of two billion gold marks (History Learning Site). They wouldn’t pay only in cash but in coal, iron and wood (History Learning Site). In 1923, Germany couldn’t pay another partial payment due to the peak of hyperinflation( increased prices led to things getting out of control), but the allies only accused the German government of trying to not pay the reparations (History Learning Site)(Sturgeon A., 2009). Both French and Belgian troops invaded the Ruhr (Germany’s valuable industrial area) to pressurize them to pay reperations.

Treaty of Versailles

953 words - 4 pages The unworkable terms of the Treaty of Versailles thats goal was to stop any possible future German Aggression. The Treaty of Versailles was a great accomplishment, as it ended five years of world war, but it fell very short of what it had been written to do. It was badly constructed and did not address many of the problems that had plagued Europe before the war. It was said to be the treaty that would bring peace forever, but it fell quite

Treaty Of Versailles

1235 words - 5 pages were not able to take part in this. This treaty took out a lot of Germany's military out with it. Germany wanted to stand up for themselves but did not have the fighting power to do so. The Treaty of Versailles was a step to civilizing the great military power set back by britain at the turn of the century. Even though it seemed like a good idea it still was an unpopular settlement.The settlement was not so much inconsistent as it was ineffective

Treaty of Versailles

1095 words - 5 pages conditions of the Treaty of Versailles which eventually lead to the outbreak of WWII. This essay will examine the ways in which the treaty weakened Germany allowing Hitler to rise to power, which*************. The Treaty of Versailles played a major role in the outbreak of WWII. By taking land away from Germany, the treaty weakened their economy as it had been largely dependent on the trade of iron and coal. Some sections of the treaty took

Treaty of versailles

1457 words - 6 pages the observations of the German Delegation on the Draft of the Treaty of Peace. We had come to Versailles in the expectation of receiving a proposal of peace on the basis actually agreed upon. . . We hope to get the Peace of Right which has been promised us. We were aghast when, in reading (the treaty), we learned what demands Might Triumphant has raised against us. The deeper we penetrated into the spirit of this Treaty, the more we became

Treaty of Versailles - 1311 words

1311 words - 5 pages eg/ July Crisis. Each was a signficant factor, no one cause was the sole cause. It is clear that the Articals of the Treaty of Versailles, claiming sole German responsibility for causeing World War I was unjust, thus it was a shared responsibility for the cause of World War I.

Similar Essays

The Treaty Of Versailles As A Cause Of Wwii

1176 words - 5 pages The 11th hour of the 11th day of the 11th month of 1918, marks the day that WWI descended into armistice. However, the involved countries reached an agreement as to the events following the war on the 28th of June, 1919. The famous Treaty of Versailles was known for its role in ending war. But it was not known for being a double-edged sword, as the ending of war came with the consequence of causing future war. The Treaty consisted of

The Treaty Of Versailles Essay

1802 words - 7 pages was not a "peace treaty" but a truce in a European thirty-year civil war.The Treaty of Versailles disarmed Germany, demilitarized the Rhineland (the German territory west of the River Rhine), and shrank German and Austro- Hungarian territory to make room for a series of new states aimed at buffering Germany to the east. It imposed blame for the war on Germany in the famous War Guilt Clause and, by extension, forced it to pay over thirty billion

The Treaty Of Versailles Essay

3241 words - 13 pages …as a Free City.” (7) The controversy surrounding this provision developed as a sensitive issue to the Germans since the population of Danzig was largely German. To the Germans, these conditions added insult to injury. Unfortunately, the treaty did not stop with these conditions. The Treaty of Versailles has become infamous for the harsh reparations it imposed on Germany. Perhaps even more notorious is the “War Guilt Clause” contained in the

The Treaty Of Versailles Essay

1690 words - 7 pages invaded, but years of war had taken a toll on Germany and it could not afford to defend itself. It was Germany who called for an armistice on the day we know as Rememberance day and yet it was Germany who took all of the blame for the first world war, and would end up starting the second one. It is my belief that the three major powers behind the Treaty of Versailles, were unjust in the terms of the treaty. Many