Causes of Hyperinflation

1.a) The policies of the Second Reich during the war initiated economical problems within Germany that later led to hyperinflation. To cover the cost of the war the German government relied heavily upon borrowing and printing money. It did this in anticipation of winning the war and claiming compensation from the defeated countries. It built up huge debts as the money they were printing quickly became greater than the value of their assets, which deemed it worthless. When Germany lost the war this debt increased as it was now faced with unexpected reparations. …