Question

Mention the rise of radicalism and economic crisis of 1923 and which were responsible for decline of Weimar republic and the rise of hitler ?

Answer 1

Political radicalisation was only heightened by the economic crisis of 1923. Germany had fought the war largely on loans and had to pay war reparations in gold. This depleted gold reserves at a time resources were scarce. In 1923 Germany refused to pay, and the French occupied its leading industrial area, Ruhr, to claim their coal. Germany retaliated with passive resistance and printed paper currency recklessly. With too much printed money in circulation, the value of the German mark fell. In April the US dollar was equal to 24,000 marks, in July 353,000 marks, in August 4,621,000 marks and at 98,860,000 marks by December, the figure had run into trillions. As the value of the mark collapsed, prices of goods soared. The image of Germans carrying cartloads of currency notes to buy a loaf of bread was widely publicised evoking worldwide sympathy. This crisis came to be known as hyperinflation, a situation when prices rise phenomenally high. Eventually, the Americans intervened and bailed Germany out of the crisis by introducing the Dawes Plan, which reworked the terms of reparation to ease the financial burden on Germans.
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Answer 2

The Weimar Republic faced violent uprisings from various groups, not to mention devastating economic problems. The German state was financially declined due to overwhelming war debts which had to be paid in gold. Consequently, god reserves depleted and value of German mark fell.