In response to the Ruhr Crisis, what did the German government resort to?

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The German government resorted to printing extra currency as a response to the Ruhr Crisis, which occurred when France and Belgium occupied the Ruhr region in response to Germany's failure to meet reparations payments following World War I. The occupation led to a severe economic crisis in Germany, as it affected industrial production and caused economic instability.

In order to cope with the heightened demands for economic support and to continue paying striking workers in the Ruhr, the government chose to print more money. This policy aimed to cover the financial shortfall caused by the occupation and maintain state functions during this crisis period. However, this decision led to hyperinflation, which severely devalued the German mark and resulted in widespread economic hardship for the population.

The other options, such as increasing taxes, imposing trade tariffs, or borrowing from foreign governments, were either not feasible in the immediate aftermath of the crisis or did not effectively address the urgent economic needs at that time. By printing extra currency, the government attempted to maintain financial stability in the short term, despite the long-term consequences that followed.

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