Hyperinflation: 1920s Germany

The video discusses the severe hyperinflation in Germany post-World War One, caused by the need to pay reparations. The German government printed more money, leading to a devaluation of currency and skyrocketing prices. This hyperinflation reached extreme levels, with prices increasing daily and money becoming worthless. Eventually, a new currency was introduced to stabilize the economy.

What was the primary reason Germany started printing more money after World War One?

• To boost the economy

• To pay off war reparations

• To increase employment

• To reduce taxes

How is inflation generally characterized in most countries?

• A decrease in the value of currency

• A sudden drop in economic growth

• A rapid increase in prices

• A slow and steady rise in the cost of living

By 1923, what was the monthly inflation rate in Germany?

• 1000%

• 900%

• 10%

• 2%

What was the price of a pair of shoes in Germany during the summer of 1923?

• 1 billion marks

• 32 billion marks

• 12 marks

• 100 marks

What drastic measure did people take due to the worthlessness of money during hyperinflation?

• Used it as wallpaper

• Burned it for fuel

• Buried it underground

• Traded it for gold