How did the French and Belgian occupation of the Ruhr contribute to Germany’s economic crisis?

The French and Belgian occupation of the Ruhr in 1923 severely exacerbated Germany’s existing economic instability. In response to the occupation, the German government ordered passive resistance, which involved a ban on all war reparations deliveries and paralyzed the region's industrial output.123

The occupation forces responded with an economic blockade that severed the Ruhr and much of the Rhineland from the rest of the country, dealing a devastating blow to an economy already dependent on western industrial production. To fund the costs of passive resistance and manage the resulting budgetary deficits, the government issued more money, which triggered runaway inflation.23

By the time Gustav Stresemann became chancellor in August 1923, the German mark had entered a free fall, leading to the collapse of the currency, the rise of barter, and the destruction of savings for the middle class and pensioners. Stresemann ultimately ended the policy of passive resistance to halt the financial collapse and stabilize the currency.23