How did the treaty of Versailles lead to hyperinflation?

History

1 answer:

trapecia [35]3 years ago

4 0

Answer: Debt

Explanation:

France and England, wanted Germany to pay heavy reparations, $33 Billion to be exact ( It was cancelled after 1933). Germany could not pay off the debt and supply its own country at the same time. So, France decided to occupy Ruhr valley to make sure that Germany would pay up. This led to many German civilians being killed by the French, during occupation. The Germans decided to print money to pay off the debt, and it worked for awhile but then quickly inflated the economy. The German economy became so messed up that foreign governments withdrew their currency from Germany. It only was fixed after Hitler assumed power in 1933.

The Treaty of Versailles was not for peace, but a heavy punishment.

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