1) Economic crises and government response, 1918-23

• Reasons for economic crises:

  The debt that Germany had accumulated during WW1
• Reasons for economic crises:

  Financial burden of reparations
• Reasons for economic crises:

  Loss of income due to losing territory and trade
• Reasons for economic crises:

  The government's spending commitments
• Reasons for economic crises:

  The relative weakness of the German economy compared with that of other major powers.
• Reasons for economic crises:


  Post-war unemployment, which reduced tax revenues and led to greater welfare spending.
• These difficulties led to growing economic turmoil, which climaxed in the hyperinflation crisis of 1923.
• The government responded with radical measures, including the creation of a new currency and loans from the USA in order to deal with the crisis.