After the war, hyperinflation occurred in many countries, specifically Germany. Hyperinflation is when an increase in prices occur, but the value of money decreases, at a very high rate. This all goes back to when the Treaty of Versailles was signed. The Treaty of Versailles was a peace settlement that officially ended World War I, signed by England, France, Germany, and Italy. According to the Article 232 of the Treaty, because Germany lost the war, they were required to make compensation for all the damage they had done to the population and properties of the Allies during World War I (Treaty of Versailles). Basically, the Allies demanded the Germans had to pay for all the damage done during World War I.This lead to massive hyperinflation. People were starving, unemployed, and on the streets- desperate for a new leader that would fix this problem. At that time, there was much political instability- people kept changing their political parties, but eventually Hitler rose to power with the Nazis. In 1993, President Hindenburg appointed Hitler as chancellor, hoping that it would be for the better good of Germany and would make the Nazis happier. However, he underestimated the Nazis’ power and his mistake led to disaster for Germany, Europe, and the rest of the
After the war, hyperinflation occurred in many countries, specifically Germany. Hyperinflation is when an increase in prices occur, but the value of money decreases, at a very high rate. This all goes back to when the Treaty of Versailles was signed. The Treaty of Versailles was a peace settlement that officially ended World War I, signed by England, France, Germany, and Italy. According to the Article 232 of the Treaty, because Germany lost the war, they were required to make compensation for all the damage they had done to the population and properties of the Allies during World War I (Treaty of Versailles). Basically, the Allies demanded the Germans had to pay for all the damage done during World War I.This lead to massive hyperinflation. People were starving, unemployed, and on the streets- desperate for a new leader that would fix this problem. At that time, there was much political instability- people kept changing their political parties, but eventually Hitler rose to power with the Nazis. In 1993, President Hindenburg appointed Hitler as chancellor, hoping that it would be for the better good of Germany and would make the Nazis happier. However, he underestimated the Nazis’ power and his mistake led to disaster for Germany, Europe, and the rest of the