Economic crises, 1918-23

Question 1

What occurred toward the end of 1923?

Answer 1

Political and economic problems of Weimar Germany reached crisis point as inflation spiralled out of control - Ruhr was invaded and Nazis attempted to overthrow the government

Question 2

What impact did the Frist World War have on the economy?

Answer 2

High inflation - much of the cost of the war had been financed by increasing the money supply which meant the German currency consequently declined in value

Question 3

How did wartime shortages exacerbate the problem?

Answer 3

Caused price rises
. Aftermath of the war - gov expenditure remained high as they had to support war widows, injured veterans and millions of demobilised soldiers

Question 4

How did the new constitution worsen things?

Answer 4

Made social security a constitutional right which obliged the gov to provide for the unmployed