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Did the heavy reparations that Germany was froced to make by the Treaty of Versailles cause the Great Inflation?
Wiki User
∙ 15y ago
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.
Wiki User
∙ 15y ago
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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 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.
Key features of the economic terms of the Treaty of Versailles?
The entire blame of the war was forced upon Germany who had to accept it, even though they weren't at all pleased by that. There was restrictions on the army which limited the army and weapons they could use German lost lots of land include saar danzig memel. The big 3 hated Germany, especially Clemenceau of France. Lloyd George wanted to maintain relationships with Germany therefore wasn't very harsh. :)
What were economic conditions like in Germany after WW1?
Bad. In the Treaty of Versailles (the one that ended the war) Germany was put with the most reparation payments. Their economy crumbled. Their money became inflated and most people went bankrupt.
How did World War 1 affect worlds economy?
Germany was in a depression because of the treaty of Versailles and the debts it created for them. Germany in 1939 had not been crippled by the debts of the Versailles treaty. Hitler in a short period of time spent more on re-arming Germany than Germany had ever paid to France & the UK. The view that the Versailles treaty caused (or would cause) great German hardship was a view held by many economists in 1919 and by the American government. The great economist Keynes voiced grave concern over the economic effects of the treaty at the time however he later admitted to underestimating Germany's ability to pay. In fact little ever was paid. Many people to this day still blame the Versailles treaty for Germany's economic problems but I'm not sure how valid such an opinion is when scrutinized with the facts. Much of Germanys inter war economic problems were a natural side effect of WWI itself and of German governmental miss management of the German economy. The Versailles treaty was a factor but one that should not be exaggerated. Reparations expenses only made up about a third of the German government spending budget deficits in the years immediately after WWI and the German government appears to have deliberately pursued the economic policy of printing more and more money to flood the money supply to pay for their deficit. Hyperinflation was the result. This was largely self inflicted. "Germany was neither dismembered nor ruined. Reparations could, and were, scaled down and, until the great world depression of the 1930s; the Germans recovered a high degree of prosperity. In fact, the establishment of the London schedule of Payments in 1921 determined that the real amount the Germans had to pay amounted to only 6 percent of their annual national income. The Dawes plan of 1924 reduced this to 3.3%, and the Young Plan of 1929 to 2.6%. Germany never paid even these amounts in full, and the payments were cancelled entirely in 1932. Furthermore, if Versailles is compared to the French settlement the Prussians imposed in 1871, Brest-Litovsk, and the war aims of the Kaiser (to effectively subjugate all of Europe and use it as a probable base for launching a veritable Weltpolitik), it was not at all harsh
What treaty required Germany to pay reparations after World War 1?
Treaty of Versailles
What important document made Germany pay reparations?
Treaty of Versailles
Who was the main country to pay war reparations as a result of the treaty of Versailles was?
Germany
When did Germany pay reparations?
On the 28th June 1919. (When The Treaty Of Versailles was signed.)
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
What outcomes of the Treaty of Versailles was a condition that President Wilson opposed?
Germany was made to pay reparations to the allies.
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 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
