The economic catalysts of political extremism: an empirical analysis of interwar Austria and Germany

Vito Bobek, Julian Seebacher and Tatjana Horvat

International Journal of Diplomacy and Economy, 2026, vol. 12, issue 3, 303-319

Abstract: This study investigates the economic underpinnings of political extremism in Austria and Germany during the interwar period, focusing on how economic crises such as hyperinflation, unemployment and industrial decline contributed to the rise of authoritarian regimes. Through a combination of qualitative interviews with experts and the analysis of historical economic data, the research highlights the critical role of economic instability in eroding democratic institutions and fuelling extremist movements. The findings underscore the importance of proactive economic policies in preventing the resurgence of extremism in modern democracies facing similar challenges. The study also offers economic stabilisation and crisis management recommendations to safeguard democratic resilience.

Keywords: interwar period; Austria; Germany; economic crises; political extremism; hyperinflation; unemployment; industrial decline; authoritarianism; Weimar Republic; Austrofascism. (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijdipe:v:12:y:2026:i:3:p:303-319

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