What was one consequence of the Ruhr Crisis for the German economy?

The Ruhr Crisis, which occurred in 1923, had significant repercussions for Germany, particularly regarding its economy. One notable consequence was the onset of major hyperinflation. The crisis began when France and Belgium occupied the Ruhr industrial region in response to Germany’s failure to meet reparations payments post-World War I. This occupation hampered Germany's ability to produce goods, leading to a decrease in industrial output and economic stability.

In an attempt to counteract the economic disruption caused by the occupation and to support striking workers, the Weimar government began printing massive amounts of money. This increase in the money supply without corresponding economic growth led to hyperinflation, where the value of the German mark plummeted. Consequently, prices soared, and savings of ordinary citizens were wiped out, drastically undermining the German economy. This hyperinflation is often cited as one of the most severe cases in history and contributed to social unrest and political instability in Germany.

This context illustrates why hyperinflation was a direct and significant outcome of the Ruhr Crisis, highlighting the economic turmoil that marked this tumultuous period in German history.