1923 Weimar

Problems present prior reached a critical mass: 

Inflationary Problem 

Wartime + Demobilisation inflation: 

• WW1 left Germany with high inflation: cost of war had been financed by increasing money supply and this caused a decline in the currency value of the mark
• Wartime shortages exacerbated the problem - rise in prices
• High government expenditure after war due to supporting widows, injured war vets and demobilised soldiers 
• The new constitution made social security a right so put more of a strain on the economy 

Reparations 

Problem worsened in 1921 when payments needed to be made

• With currency weakening and inflation increasing, paying this became harder and harder.
• In 1922, the German…