We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

The great inflation of the 1920s - Essay Example

Comments (0)
Summary
The Great Inflation of the 1920s The economy of a country is a significant tool that the government uses to exert its control over the people. The state of a country’s economy indicates the governments control over the people. The country’s financial condition is an indicator of a country’s economic prowess…
Download full paper
GRAB THE BEST PAPER
The great inflation of the 1920s
Read TextPreview

Extract of sample
The great inflation of the 1920s

Download file to see previous pages... In the initial stages of the great inflation, German citizens did not experience its effects partly due to the stability of German’s economy before World War I. At the end of 1923, the effects of the great inflation started being felt by the German citizens. The great inflation reached its peak at the last half of 1923 when the prices of basic commodities had increased by more than five hundred times. The price continued to increase steadily putting German’s economy at the risk of collapse. Although the inflation resulted from economic factors, it was related to German’s governance. This essay will investigate the great inflation, and its impacts on Germany and the German people. Like most other inflations, the great inflation had its source in poor monetary policies and governance issues. Germany’s involvement in World War I is believed to have been the source of its monetary crisis. At the height of World War I, the German government exhausted its monetary reserves forcing it to turn to money printing press as a quick intervention measure. The German government needed money to pay its soldiers and officers serving in the war. The government also needed money to purchase military equipment that was required during the war. The government considered the act of printing extra money as a quick intervention strategy of winning the battle. ...
This measure was meant increase the amount of liquid money under government’s control. This measure could not however, guarantee the government adequate money to pay its military personnel. To contribute to the government’s efforts of increasing the amount of money in the treasury, the parliament passed policies that allowed the government to offer war bonds. The Reich bank was to respond to this offer by printing extra money to balance the amount of money in government’s position with that in circulation. From 1914 to 1918, the amount paper money printed for both the government and private sector spending had reached 33.12 billion marks. This was a significant increase since before the war the German government and the private sector spending accounted for nearly 2.37 billion marks. Before the war, one US dollar traded for approximately 4.12 marks. At the end of World War I, the exchange rates had changed significantly since one US dollar traded for 8.32 marks. This was however, the initial stages of the inflation. Although the effects of this inflation were not sufficient to cause an economic breakdown, they greatly influenced German’s economy. The worst phase of the monetary crisis was experienced during the first five years that followed the war. At the first quarter of 1919, the supply of paper money had reached 50.16 billion marks. This figures changed constantly to reach 1,310.56 billion marks at the close of 1922. On the other hand, 192.3 marks traded for one US dollar at the beginning of 1919. The exchange rate increased dramatically and reached 7,589.37 in 1922 and, the worst situation occurred in November 1923 when one US dollar traded for 4,200,000,000.00 marks. This figure is absurd and it implied great ...Download file to see next pagesRead More
Comments (0)
Click to create a comment
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Inflation
In the same way, it will provide an analysis into some of the effects of inflation while focusing on the different types of inflation arising from different economic situations. Introduction Inflation is described to be a rate in which the overall price of goods and services is increasing while the purchasing power decreases in an economy (Nicholson 57).
5 Pages(1250 words)Essay
Inflation
In effect, inflation is the loss or the diminishing of value of money in a given economy (Blanchard 45). In plain language, inflation is the instance where goods and services get expensive or the phenomena where people complain that the price of commodities is rising.
3 Pages(750 words)Essay
Inflation
The effects of inflation can affect an economy in positive and negative ways or both positively and negatively simultaneously because it affects the differently. In many circumstances, there are different explanations that could be given to the rise of inflation in an economy and which could explain the reasons why a currency can lose its purchasing power as compared to different circumstance in market.
6 Pages(1500 words)Essay
Inflation
Businesses are reluctant to make investments during periods of volatile inflation. Countries suffer from a tax rate that is based on pre-inflationary periods that are less than the current value. It also causes exports to go down as prices go up resulting in a trading deficit.
2 Pages(500 words)Essay
Liberalism and Big Government: 1920s-1980s
According to the report America was founded on the constitutional concept that the federal government power extended to providing for defense and promoting the general welfare. Liberal legislative leadership, partly through necessity, has instigated steady governmental growth well beyond where the architects of the constitution and most citizens would favor.
10 Pages(2500 words)Essay
Compare and contrast the economic, political and social environment of the United States in the 1920s and the 1950s
The evolution era of American history was the roaring period of twenties that was different from other periods socially, economically, politically and
4 Pages(1000 words)Essay
Inflation
Whole world is going through a phase of economic recession. Despite much progress in the development of sound marketing strategies,
6 Pages(1500 words)Essay
Inflation
This means that the number of goods and services a dollar would buy would reduce over time. That is, the value of the currency would fall. It is also argued that a desired rate of
6 Pages(1500 words)Essay
Inflation
This discussion concludes by outlining control measures necessary to manage inflation and the alternatives polices that can be taken by the government to manage inflation. Inflation refers to increment of price levels in
7 Pages(1750 words)Essay
Inflation
Inflation refers to increment of price levels in general that is the rise in prices in not on individual commodities but in all areas over a period of time. It’s a change expressed in percentage and compared over
7 Pages(1750 words)Essay
Let us find you another Essay on topic The great inflation of the 1920s for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us