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26 November, 09:11

What cause the economic collapse of Germany following treaty of Versailles

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  1. 26 November, 09:35
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    Germany was losing the war (world war 1) and when Germany lost the war the government was in ruins the treaty said that it was all germany's fault and the have to pay for everything.
  2. 26 November, 10:20
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    From what I recall, the Treaty of Versailles demanded reparations for the damage caused in the war. The reparations were equivalent to around 31.4 billion dollars (442 billion in 2017), so it is no surprise that Germany would resist the Treaty's terms. Because of this encumbered debt, Germany was unable to repair its own economy and country after the war, rendering the reparations a useless burden on everyone.
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