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After the defeat of imperial Germany, the Weimar Republic came into existence. The Republic had a democratic constitution and a federal structure. The Republic was not well received by the people. The Weimar Republic faced problems on all fronts- economic, social & political. It was held responsible for the defeat in the 1st world war. The Republic had to pay war compensations & this put the Republic in deep financial crisis. Germany had fought the war largely on loans & had to face war reparations in gold. Subsequently gold reserves depleted & the value of German mark fell. Prices of essential commodities rose dramatically.

The Weimar Republic faced problems on the political front also. The constitution had many defects. The constitution gave the President powers to impose emergency, suspend civil rights and rules for decree. The Weimar Republic had 20 different cabinets within the short span of time. Soon, people lost confidence in the democratic parliamentary system.

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