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Did the heavy reparations that Germany was froced to make by the Treaty of Versailles cause the Great Inflation?
The issue is still debated. The German government relied mainly on borrowing to finance its efforts in World War 1 and avoided large increases in taxation. This was almost certainly an important factor. In mid 1918, before the revolution of November 1918 prices in Germany had on average risen to 3 times their pre-War level. The final stages of the Great Inflation were triggered by French an Belgian occupation of the Ruhr in Janaury 1923.
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Why did the wall street crash cause problems for Germany?
Germany was heavily relying on America to help pay of the reparations from the treaty of versailles as the dawes plan from america was helping to pay. So when the wall street crash happened in america, they had no money to give to germany to pay off the reparations
What did Germany do to casue high rates of inflation after world war 1?
After World War I, Germany faced enormous reparations demands from the Treaty of Versailles, which strained its economy. To pay these reparations and support its war-torn economy, the German government resorted to printing vast amounts of money, leading to hyperinflation. This excessive money supply devalued the German mark, causing prices to skyrocket and savings to evaporate, ultimately resulting in one of the worst inflation crises in history.
What is the inflation rate in Germany?
Due to the Treaty of Versailles, Germany had to pay reparations to France, Belgium and Britain (£6.6 billion). The reparations were due to start in 1921. French and Belgium troops invaded the Ruhr in response to the German Government failure to pay the reparations they owed. Germans workers were then forces to go on strike in the Ruhr but continued to get paid. The German Government printed more money to pay the German workers and to pay the reparations they owed the other countries. Then the workers on strike got more money that they could buy things from the shop. As they spent more money in shops they shop keepers put their prices up. The German Government carried on printing money so the shopkeepers raised their prices again. Then prices were inflating do fast that it was known as hyperinflation. By November 1923 a loaf of bread cost around 20 million marks.
Financially speaking what two things really hurt Germany and forced them into economic depression?
Two major factors that significantly hurt Germany financially and pushed it into economic depression were the heavy reparations imposed by the Treaty of Versailles after World War I and the global Great Depression of the 1930s. The reparations burdened the economy, leading to hyperinflation in the early 1920s, which eroded savings and destabilized the currency. Subsequently, the Great Depression caused massive unemployment and further economic contraction, exacerbating the already dire financial situation. These factors collectively undermined Germany's economic stability and contributed to widespread hardship.
What began the collapse of the German economy in the 1920s?
The collapse of the German economy in the 1920s was initiated by the severe reparations imposed by the Treaty of Versailles after World War I, which placed a heavy financial burden on Germany. The situation worsened with hyperinflation in the early 1920s, triggered by the government's decision to print money to pay reparations and support the economy. This led to the devaluation of the German mark, skyrocketing prices, and widespread poverty. The economic instability ultimately set the stage for the rise of extremist political movements, including the Nazis.
What treaty required Germany to pay reparations after World War 1?
Treaty of Versailles
What important document made Germany pay reparations?
Treaty of Versailles
When did Germany pay reparations?
On the 28th June 1919. (When The Treaty Of Versailles was signed.)
Who was the main country to pay war reparations as a result of the treaty of Versailles was?
Germany
How do you use Treaty of Versailles in a sentence?
Germans were angry that their leaders had signed the Treaty of Versailles. When Germany failed to pay reparations ordered by the Treaty of Versailles, France occupied the Ruhr Valley.
What called on Germany to demilitarize pay war reparations and return territory?
The Treaty of Versailles.
Which was a major provision of the Treaty of Versailles?
A demand that Germany pay large war reparations
What was Prime Minister Lloyd Georges reaction to the treaty of Versailles?
'we propose to demand the whole cost of the war from Germany' he believed that Germany should pay reparations. this led to inflation for Germany. === === this is all ive got people..help!!
Why did republicans in congress reject the treaty of Versailles?
It required Germany to make war reparations - apex
Who were forced to pay for damages of ww1?
Germany was forced to pay reparations under the Treaty of Versailles, but they were unhappy about this
What outcomes of the Treaty of Versailles was a condition that President Wilson opposed?
Germany was made to pay reparations to the allies.
What are the 5w's of the Treaty of Versailles?
Who: The Allied leaders, Germany What: Treaty of Versailles When: Signing on November 11, 1919 Where: Versailles, France Why: To keep Germany from starting another war, for Germany to pay war reparations, give back land, reduce military. take blame for WWI
