How did Germany’s passive resistance to the Ruhr occupation worsen hyperinflation?

The German government’s policy of passive resistance to the 1923 Ruhr occupation significantly accelerated the collapse of the German currency, turning existing inflation into catastrophic hyperinflation.12

When French and Belgian troops occupied the industrial Ruhr region, the German government ordered workers to cease production and banned all reparations deliveries. This action had several devastating economic consequences:23

• Economic Paralysis: The resistance effectively halted the Ruhr’s industrial output, which was vital to the German economy, especially following the loss of Upper Silesia.23
• Blockade and Dislocation: In response, occupation forces enforced an economic blockade that severed the Ruhr and much of the Rhineland from the rest of the country, further destabilizing national economic life.23
• Currency Depreciation: To support the striking workers and sustain the economy during this period of lost production and tax revenue, the government resorted to printing massive amounts of money.24

This combination of a crippled economy and a rapidly expanding money supply sent the mark into a free fall, with the exchange rate against the U.S. dollar plummeting from 160,000 in July 1923 to 4.2 trillion by November 1923.23