Question

Explain the economic crisis in Germany(1923).​

Answer 1

Answer:

The government was unable to deal with the economic crisis left by the war. In 1923, France occupied the Ruhr Valley, the heartland of German industry, because Germany was unable to pay war reparations demanded by the Treaty of Versailles. ... The economic situation in Germany briefly improved between 1924-1929.

Explanation:

In January 1923, French and Belgian troops occupied the industrial region of Germany in the Ruhr valley to ensure reparations payments. Inflation was exacerbated when workers in the Ruhr went on a general strike and the German government printed more money to continue paying for their passive resistance.

Answer 2

ANSWER:-

The following points economic crisis in Germany (1923).

1. Germany was financially crippled after the first World War, little could Weimer Republic do to recover its economy, Germany under the reparation clause had to part with much of its gold reserves and later decided to print and issue more currency to pay for war damage & to exchange it.
2. Occupation of Rhur by the French forces to claim coal created further resentment.
3. Germans in order to deal with the crisis, recklessly printed more currency, they flooded the market with German mark that is increased its supply in the market therefore its value decreased.
4. Once the value of the currency decreases, it implies you pay more to buy goods. The prices of all commodities will go up leading to inflation.
5. Later America by virtue of Dawes plan tried to ease financial burden of the German.

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