The economic problems of Germany following World War I were
due to the war reparations that it had to pay as part of the Treaty of
Versailles. Apart from the reparations,
there were other causes. Rather than
raise taxes to make new taxes to finance the war. Instead, it took out loans and the increase
circulation of money caused inflation and the budget was destabilized. This made it difficult for Germany to pay the
reparations that the Treaty required them to pay for the war.
