Watch the video and suggest ways in which the Weimar government could solve the problem of hyper-inflation.
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20 comments:
The Weimar government could start to print less money again to bring back and stabilise their currency value like before. That way, prices would fall and people would be able to afford things again and start buying. The Weimar government could also try to help businesses affected by the infation to rise again so that they can create jobs for the people to help them have money to survive the inflation.By doing this, inflation will be over after a period of time and the people still survived.
Commented by: Ng Wei Jie (20)
3 Henry
The Government should lower the prices of goods such as food which businesses sell so the prices would not go up even higher and the Government need not print even more money. The Government can then lower the wages of the people. The Government should also help the people unable to cope with hyper-inflation by giving them shelter, food, water and all other necessities.
As the Government was unable to pay the reperations needed as stated in the Treaty of Versailles, they could have borrowed the money from other countries such as Austria-Hungary.
Lui Yan Han James (19)
3H
Weimer government should create a new currency and dump the old one.Example, 1 million marks could be used to buy a loaf of bread. These 1 million marks could than be exchanged for new currency that show the prices of pre-hyperinflation. So say 4 dollars of the new currency could buy a loaf of bread and at the same time be exchanged for 1 million of the useless marks. Government should step in to create charity for the poor which would be affected. Money can be found from other countries, eg Russia, who left WW1 and were outcast of the world too.
3H Liu Wei Liang Randy(18)
The Weimar government should replace the system with a better system. By printing more money when the government simply need them, there would be too much money and therefore causing inflation. One way of solving inflation is to remove the need for money. When u remove the need for money, inflation will decrease as less people need the money and the currency of the money will increase, therefore getting rid of inflation.
Name: Gan Zheng Hong
Class: 3J
Index : 7
The French had to enter the Ruhr area of Germany to make them pay for the reparations as the Germans did not pay up. They had to pay reparations but they did not have money in 1923 so they printed money. By printing money at a massive scale, the money would be worthless as everyone would have tons of money as their wages would increase. Companies or shops selling merchandise or food would also jack up the prices as everyone would have so much money to spend. I would suggest to the French Government by entering my industrial area, morale would be low as my country would think that Germany is weak under my rule so everyone would vote for a new type of goverrment which may not seek peace like my government does so there is a more likelihood of a second war if you do not help me as the Weimar Government agreed to sign the Treaty of Versailles partially to have peace in Europe. I would also ask for support from them by giving Germany more time to pay up. I would also ask other countries for loaning of money and control the prices of neccesities so that everyone would have things to eat and drink so they would be able to rebuild the economy which will soon be able to produce money, which could be used to return those who have loaned me money in assistance and pay some interest so they know that working with the Weimar government is a win-win situation.
Linus Ong(22)
3J
The government can increase taxes, rates and reduce government spending. they can also remove the current notes and change to a different currency.they should also hold on to the currency and not print more money. this way, the value will not drop. the people should also work together to rebuild the economy. they should work hard and not give up.
Dylan Yap (5)
3J
Due to the extent to the damage done by the hyperinflation, the weimar goverment has to take up large measures to solve these problems. One way would be to slash goverment expenditures or altering the country's currency basis. As a last resort, the goverment could also impose wage and price controls. Name:Yap wei jin Class:3j Index number: 33
Weimar government could have paid the French by installment instead of avoiding, which has led to the country suffering even more. The Germans should have bore the responsibility of the war they created, so paying back for damages they have caused is a must, however, the government should not have asked the germans to go on strike. The Wiemar government should not use the people as a form of a scapegoat, as they have only suffered during the war. The Weimar government could have just increased taxes for the time being and later refund the money with interest back to the people, taking the taxes as a form of a loan. That way, inflation or hyperinflation would not occur and it would be fair to the Germans as well as the French.
Name: Keith Ooi
Class: 3J
Index Number: 12
The Weimar Government could have solved the problem of hyper inflation by introducing a new currency. as the old currency was practically useless due to hyperinflation, the new currency would solve the problem of hyperinflation. The Weimar Government had to print more money to pay the workers who were on strike in the Ruhr. By printing more money, they reduced the value of their currency. Introducing a new currency would mean that the new currency would at least have some value.
The Weimar Government could also negotiate with the Entente Powers they had to pay annual reparations to. They could do this by appealing to them to lower the amount Germany needed to pay in reparations each year, so that they would be able to cope better.
At the same time the Weimar Government should ask the Workers working in the Ruhr industrial are to stop their passive resistance and get back to work. This was because the Weimar Government had previously asked the workers to go on stike, or passive resistance due to the French occupation of the area, in order to prevent the French from getting their money. As the Ruhr was the most important industrial area of Germany, this meant that Germany suffered heavy losses as the workers were not doing any work, yet the government still had to pay the workers, and as a result printed more money, diluting the value of their currency. By asking their workers in the Ruhr area to go back to work, they would solve the problem of hyperinflation, as they would no longer need to pay money to workers who were not working, and also, there would be production from their important industrial area.
Done by Samuel Pang (25), Sec 3J
Suggest ways in which the Weimar government could solve the problem of hyper-inflation.
They should stop printing money, to ensure that the value of the German Dollar will not drop any further.
The Weimar government can impose taxes on the citizens to try and force the value of the German Dollar to rise.
Wages should be reduced for all workers to emphasize the value of the German Dollar, and to prevent the citizens from throwing it away.
The Weimar government should introduce jobs in the various industries, like construction to clean up the rubble caused by the war and manufacturing industry to manufacture more food for the country.
If the German Dollar cannot be saved, I would suggest an introduction of a new currency for Germany as the people has lost faith in the German Dollar.
Name: Randy Lai
Register: 24
Class: 3H
The central bank can increase the monetary base as much as it wants…because it’s the entity that issues the currency. It then uses that currency to buy bonds from the government, which is just a convoluted way of saying it loans this money to the government so that the government can continue to spend money. Of course if anyone else tries this sort of legerdemain, it would be called counterfeiting. When the government and central bank does it, it’s considered economic stimulus. Then the government can use this money to pay the reparation costs as stated by the allied powers.
Mitchell Chan (21) 3J
the government could stop printing money and try to ask for help from other countries by signing agreements. tankangjoe (26) 3J
I think the Weimar government could solve the problem of hyper-inflation by having a new currency, control the number of banknotes printed and to prevent the forming of black market. They can also control the prices of goods so the prices will not go too high the extent. they can also give fixed wages to the workers and these will all try to solve the problem of hyper-inflation in Germany.
Name:Tan Yi Yang (30) 3H
Am I the first person of 3J to post or do you erase the answers?
The Weimar government could have cured the problem when it started by putting a hold on Germany's debt so as to give Germany more time to rebuild its economy and wealth. The Weimar government could also have regulated or limit the production of currency so as to prevent the hyperinflation from getting even worse.
order the trading industry to stop highjacking the prices and lower them while the mint had to stop printing money for that period of time until the economy is stable.
Low Chong Han (18) 3J
The Weimar government should have stop printing money from the start, if they continue to print money, the value of their money will start decreasing, causing hyper-inflation. They should have taken a loan from another country to pay the reparations and not continue to print money, although it will solve the debt that they are in, but it will cause more problems for the country and it will certainly not benefit the government and the citizens. They should give out rations to the people to stop starvation, and give out incentives for people who would start a business as this is a very difficult time, hardly anyone will want to start a business. The government could also talk to the Allied Powers and ask to give them a longer time to pay their debts so that they could rebuild the economy and not be in hyper-inflation.
Tan Hong Rui Joel-(27)-3 Henry
Ways to solve Hyper-Inflation:
Preventing hyper-inflation -
1. Ensure that the money in circulation is equal to the amount of gold in the central bank.
2. Ensure that there is a balance between supply and demand.
3. Although inflation is inevitable, the government should not print out so much money to prevent hyper-inflation.
Solving hyper-inflation -
1. Control wages and prices.
2. Sell products aboard to bring in money.
3. Declare a new unit of currency.
Name: Tan Yon Han
Class: 3J
Index Number: 29
Ms Tan, did you get my answer for the e-learning homework?
-ensure that the money in the circulation is equal to the gold in the central bank
-ensure that there is a balance between supply and demand
-do not print out so much money to prevent hyperinflation
-sell products aboard to bring in money
-declare a new unit of currency
Bryan Goh Jun Yi (2) 3H
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