Question

what was the economic crisis of 1923? How did it effect germany?(5 marks answer)

Answer 1

In the first world war Germany had fought war largely on loans and to repay war reparation aur compensation in gold so this depleted the gold reserves of Germany at a time when resources where less Germany refused to pay the loan and the allies captured ruhr which was the major industrial regions of the Germany Germany was so much frustrated by all this things that it started printing paper currency recklessly which too much money in circulation the mark of the German currency fell in April 1 US Dollar was equal to 24000 marks and the figure ran into trillion. as the mark increased the value of the products sored that means it rose very quickly. the image of German carrying card loss of currency to buy a single loaf of bread was widely publicise evoking worldwide sympathy this situation was known as hyperinflation that means a situation where prices rises phenomenally so this was the economic crisis of the Germany eventually the the Americans intervene and bailed Germany out of the crisis by introducing the dawes plan which reworked on the terms of the compensation which reduced the financial burden on Germany....... I hope this could help

Answer 2

Political radicalisation was only hightened by the economic crisis of 1923-

1) Germany had fought the war largely on loans and had to pay war reparations in gold.

2) This depleted gold reserves at a time resources were scarce.

3) In 1923 Germany refused to pay and the French occupoed its leading industrial area Ruhr to claim their coal.

4) Germany retaliated with passive resistance and printed paper currency

recklessly.

5) With too much printed money in circulation the value of german mark fell.

The situation led to hyperinflation where prices rose extremely high.