Germany After WW1

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Germany became a republic after the war. It was in a bad state. People were short of food and jobs. There were riots in the street as different political groups fought for power. In 1921, the allies decided that Germany must pay them £6600 million in damages, known as reparations. It was the last straw.

In 1923, French troops moved into the Ruhr, a German industrial area, to claim their reparations. The workers went on strike. The German economy went into a nosedive.

This was known as inflation. The German government did not have enough money to cope, so it began to print money that it didn’t actually have. When this happens, the value of money goes down and the prices go up!

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