"Germany had started inflation on purpose in order to inflate its way out of war reparation payments that were seen as overdone by the German industry."

That isn't quite correct. Germany had to pay both monetary as well as material reparations and when Germany fell behind on material reparations France occupied the region to the west of the Rhine to force payment.

The German response was a general strike. However the German government didn't want those Germans to starve so they paid the wages with money fresh from the printing presses.

That led to hyperinflation.
Christian | 01.11.06 - 7:08 pm | #