POL327Y5 Final: exam.docx
Document Summary
The weimar republic emerged after the defeat in ww1 and collapse of the emperor. The problems occurred not so much in the institution, but rather context in which it took control. German nationalist was offended by the harsh peace that was imposed by the victors in. Versailles treaty, including the loss of german colonies and of german territory in the east (to. Poland) and the west (to france) as well as reparation payments germany was forced to pay for war damages inflicted by german military forces crippled the economy and resulted in a spike in unemployment. The reparations were to be paid in german marks, which gave the government in berlin an incentive to fuel inflation. By inflating the currency they would pay the debt off in less valuable currency. Gradual at the beginning, but by 1923 reached hyperinflation reached point to be 100% inflation rate per year.
