To pay reparations after World War I, Germany

2 answers:

8 0

What Germany did was print more money which caused a massive inflation which then in turn cause a lot of civil and economic unrest in Germany at the time. All of this led to a rather unstable period for Germany due to all the reasons stated.

Masteriza [31]3 years ago

5 0

Answer:

To pay reparations after World War I, Germany printed more money.

Explanation:

After the end of World War I in November 1918, France and Great Britain imposed on the defeated Germany the payment of war reparations for the destruction caused during the conflict.

The German government issued paper money to pay the reparations of war, calling Papiermark to these new issues. Due to the emergencies arising from the conflict, the Papiermark lacked of gold backing and was not convertible into this precious metal, which was an unusual situation for the time, where the gold standard scheme required all the paper money issues of a country were backed by gold, precisely to guarantee its value. As a result of this situation, Germany entered into a period of hyperinflation.

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