So I'm taking a history class on 20th century Europe at Cornell and we had a guest speaker come in and tell us that Germany purposefully inflated the German mark in the 1920s. Seeing as (I believe) their reparations were due in British pounds, how would printing more money really help them? Would they be able to pay more of their debt by taking advantage of a "lag" in the currency exchange rate? Or, like my TA suggested, did they inflate the mark to signal to other countries that they couldn't pay back their debt?
And then, finally, I know there exists an oversimplification that the German people were "pushed" to elect a leader like Hitler because of the harsh reparations that crippled Germany's economy. I have two problems with this explanation. First, if the hyperinflation was actually a purposeful action then Germany's economic strife could be largely attributed to the Weimar Republic's response to the reparations as well as the global depression of the 1930s. Second, it's been my understanding that Hitler was simply appointed chancellor in 1933 by Paul von Hindenburg and then assumed a dictatorial position by way of the Reichstag fire decree. I know Nazis were being elected in the Reichstag but what part of Hitler's rise to power would be democratic?
(Bonus question: I remember reading somewhere, years ago, that the Nazis had actually begun to fall out of favor with the German people based on the most recent Reichstag elections before Hitler assumed totalitarian control because the German economy had begun to improve. To what extent was this true?)
tell us that Germany purposefully inflated the German mark in the 1920s.
So the French and Belgians temporarily occupied the Rhineland in the early 20s to force Germany to begin paying its reparations (they were dragging their heels), but the German government as a sign of defiance told it's workers in the region to go on strike, Germany then continued to pay them by printing large amounts of money. It should be noted that Germany's economy was already experiencing inflation and was in bad straights; so this massive printing of money only made things worse.
what part of Hitler's rise to power would be democratic
Hitler became the largest party on the reichstag through fairly democratic means. But he was appointed chancellor as part of a plan by Franz Von Pappen to control Hitler by way of Pappen being made vice-chancellor. Technically Hitler should have been appointed chancellor because he led the largest party in the Reichstag, but he only had a plurality, never a majority.
Hitler assumed totalitarian control because the German economy had begun to improve. To what extent was this true?
Fairly true. The Nazis ultimately came to power because of the depression and when the economy began to improve Germans began to turn away from Hitler. His popularity ebbed and flowed greatly through out the entirety of Nazi Germany's brief existence.
I hope this answers all your questions.