Vincent Coon The Kaiser, William II abdicated and a republic was proclaimed with the SPD leader Frederich Ebert as Chancellor The new government signed the armistice with the Allies. German people saw this as an act of treason The Treaty Of Versailles worsened the situation Germany was convinced that the principle of selfdetermination had been ignored and strongly believed that the War Guilt Clause and the reparations payments were unjust He had a completely new approach to the issues facing Germany He introduced a new currency (Rentenmark), which was stable and ended hyperinflation With Stresemann as foreign minister Germany saw a period of prosperity The treaty of Locarno underlined this development His death came to the worst possible time Germany was about to experience another great crisis caused by the wall street crash It was in this political chaos that the Nazis and Communists thrived Attacks from the Left The Spartacist Rising, The Bavarian Republic ( Independent Socialists had much support in Bavaria but very little nationally. They set up a republic of their own in November 1918) Attacks from the Right The Kapp putsch The Munich putsch Right-wing extremists were nationalists. They wanted to see Germany great and powerful. Germany’s defeat and the peace treaty left them feeling angry and humiliated. Right-wing extremists felt themselves to be Germany’s best defence against the menace of socialism and communism. Right-wing extremists had no time for democracy. They felt that battles for power between political parties divided the nation and weakened it. He cut the government spending in order to keep inflation under control and keep German exports competitive. He increased taxes, reduced salaries and reduced unemployment assistance only worsened situation Electoral system too democratic There were twenty separate coalition governments in the period and this gave the impression of instability It was a republic born out of defeat. The severe economic problems that were faced reduced support especially the hyper-inflation of 1923 and the Great Depression of the 1930’s.