Was the Treaty of Versailles the greatest problem the Weimer Republic faced in the years 1918-1923?
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... lies demanded reparations of Ģ6,600,000, this caused great train on the German economy which had already suffered fu to losing so many important industrial resources. But reparations only cost Germany 2% of her national out put per year. This suggests that the annual payments were not too harsh and the reason why Germany became so poor was because of the vast sums of money spent on the war and the world recessions. Indirectly the Treaty of Versailles caused the German government to print paper money even when it didnīt have sufficient resources to support it, which was due to the treaty, which had taken so many resources. This in turn led to constantly rising inflation. By 1923 prices had become ridiculous, although people who had taken out large loans (such as industrialists who were mostly against the Weimar Republic and on the side of the right since they feared the communist and their anti-capitalism) benefited, and German goods were cheap for other countries to buy which did stimulate trade and employment. But the problem became even worse when in 1923 French and Belgian troops invaded t ...
