Question

the 3 events that led to economic crisis in Germany in 1923

Answer 1

The political atmosphere in Berlin was charged with demands for Soviet-style governance. Those opposed to this – such as the socialists, Democrats and Catholics – met in Weimar to give shape to the democratic republic. The Weimar Republic crushed the uprising with the help of a war veterans organisation called Free Corps. The anguished Spartacists later founded the Communist Party of Germany. Communists and Socialists henceforth became irreconcilable enemies and could not make common cause against Hitler. Both revolutionaries and militant nationalists craved for radical solutions. 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.
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