Germany 1923: Hyperinflation, Hitler's Putsch, and Democracy in Crisis

As the great Austrian writer Stefan Zweig confided in his autobiography, written in exile, “I have a pretty thorough knowledge of history, but never, to my recollection, has it produced such madness in such gigantic proportions.” He was referring to the situation in Germany in 1923. It was a “year of lunacy,” defined by hyperinflation, a political system on the verge of collapse, and separatist movements that threatened Germany’s territorial integrity. Most significantly, Adolf Hitler launched his infamous Beer Hall Putsch in Munich—a failed coup that nonetheless drew international attention and demonstrated the Nazis’ ruthless determination to seize power.

In Germany 1923, award-winning historian Volker Ullrich draws on letters, memoirs, newspaper articles, and other sources from the time to present a captivating new history of those explosive twelve months. The crisis began when the French invaded the Ruhr Valley in January to force Germany to pay the reparations it owed under the Treaty of Versailles, which had ended the Great War. For years, German leaders had embraced inflationary policies to finance the costs of defeat, and, as Ullrich demonstrates, the invasion utterly destroyed the value of the German mark. Before the war, the exchange rate was 4.2 marks to the dollar. By November 20, 1923, a dollar was worth an incomprehensible 4.2 trillion marks, and a loaf of bread cost 200 billion. Facing the abyss, many ordinary Germans called for a national messiah. Among the figures to vie for that role was Hitler, a thirty-four-year-old veteran who possessed a uniquely malevolent personal magnetism. Although the Nazi coup in November was put down and Hitler arrested, the putsch showed just how tenuous the first German democracy, the Weimar Republic, was at its core.