The Weimar Republic was established in Germany after World War 1 ended in 1918. The Treaty of Versailles imposed harsh terms on Germany, including war reparations that severely damaged its economy. In the early 1920s, political unrest grew as extremist groups on the far left and right fought for control. Hyperinflation hit Germany hard in 1923, wiping out savings and causing economic chaos. Though the economy recovered in the late 1920s, the Great Depression led to high unemployment and further political instability. By 1932, Adolf Hitler and the Nazi party had become the largest party in the Reichstag, and Hitler was appointed chancellor in 1933.