Title: How did the Treaty of Versailles lead to economic hardship and hyperinflation for the German economy? - eNotes.com
Headings: How did the Treaty of Versailles lead to economic hardship and hyperinflation for the German economy?
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How did the Treaty of Versailles lead to economic hardship and hyperinflation for the German economy?
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Content: As a result of Germany's inability to pay these reparations, French and Belgian troops invaded the Ruhr Valley in order to seize raw materials and industrial centers which would serve as partial payment. They took control of mines and factories and requisitioned a large number of goods from this industrial region. German workers, acting under the instruction of the government, refused to cooperate with the occupying forces. This drove unemployment in the country up to about 23 percent. In order to further pay off their debts and support out-of-work Germans, the German government decided to increase its printing of paper money. This, combined with the shortfall in domestically produced goods, led to rampant hyperinflation as the value of the currency dropped dramatically. Further Reading
http://www.bbc.co.uk/history/worldwars/wwone/versailles_0...
https://www.theguardian.com/world/2009/sep/05/versailles-...
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The Treaty of Versailles had many harsh effects on Germany. The Treaty of Versailles had significant negative economic impacts on Germany. Germany was required to pay the Allies $33 billion in reparations for the war damages caused by World War I. These payments made it very difficult for Germany to take actions that would help Germany’s economy grow. Since Germany had to make these payments, they didn’t have as much money to invest in their economy.