Why could the government not just print more money in the Weimar Republic? (in reference to the hyper-inflation crisis)

Printing more money became the issue. The word 'inflation' itself refers to when prices are rising but the value of money is falling.Inflation in the Weimar Republic largely came about because the government printed money during the war to pay back its reparations, but the printing of more money (which are essentially pieces of paper based off a value) does not increase the value the country had to offer. So in essence every banknote printed became less and less valuable as the value of money was not matching the printing rate. Despite this however, the government did not learn their lesson in 1919, and in 1923 printed more notes as a means to pay the workers on strike in the Ruhr after a French invasion. The value of money kept falling with each note printed causing what is referred to as hyper-inflation. Banknotes were almost meaningless, there are examples of people having to load wheelbarrows of money to the shop in order to buy one loaf of bread. Or, a common story is that it became less expensive to make a fire by burning piles of money than it was to burn a newspaper because of the price rises. The rise in prices happened as the value of money was falling. To understand this, imagine the situation in a smaller context, for example, you are the owner of a clothing store. If people have more money you want to put prices up to earn more profit, but also need to put prices up because you recognise the other stores have and you need to earn more profit to buy bread, milk etc. as the prices of those have also risen. Prices keep rising rapidly with demand to the point that prices allegedly could have doubled whilst you were in the queue. The crisis therefore is in full flow: prices are rising at a rapid rate whilst the value of money is catastrophically falling. Printing more money would only add more meaningless banknotes to the situation as the value of money falls with each print.

Answered by Sophie E. History tutor

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