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Browse: Home / KNOWLEDGE / Politics

How did the Weimar government allow hyperinflation to occur?

Richiboi: How did the Weimar government allow hyperinflation to occur?
Part of what I study at school in history is the Weimar republic and one of the problems faced by the republic was the issue of hyperinflation. The main reason hyperinflation occurred in the first place was because the government was pretty much bankrupt and decided to print more money, but something I’ve always wondered is why the government did this.

I mean surely someone in the government would point out that no matter how much money they print it wouldn’t make them any richer and would only lead to hyperinflation.
But printing more money solves nothing.

In fact, it makes things worse, surely they realised that?

Answers and Views:

Answer by General Fear
If you have no other option, how else will you pay your bills.

If the market refuses to lend to a government because they are a bad credit risk. And if the government can’t tax their citizens anymore because they are tapped out. What else is a government to do?

Some believe that is the fate of the United States. If those who buy our debt decided not to buy anymore US debt then the United States will have to print money. You can tax the American people at 100% and it is still not enough. That’s why we borrow. So the only other option will have at that point is print money.

Answer by Khamsin
I believe they did it to avoid paying France war reparations. This was a loophole in the Treaty of Versailles, which required Germany to pay most of Europe an exorbitant sum.

Hyperinflation allowed Germany to default on their reparations, relatively blamelessly.

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