Social Sciences, asked by nikhilchaurasapc07av, 1 year ago

discribe even leading to the economic cricies in Germany


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Answered by JyothyVS
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Answered by uma29112004
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=After Germany lost in the WW1 in 1918, it was held responsible for all the war damages suffered by the Allied countries.

=In a peace treaty at Versailles, France, Germany lost one-tenth of its population, overseas colonies, 13 per cent of its territories, 75 percent of its iron and 25 percent of its coal to France, poland, lithuania and denmark.

=They were also forced to pay compensation worth 6 billion.

=The resource rich Rhineland was also occupied by the Allies.

=Also, Germany had fought the war on loans and had to pay war reparation in gold

=this depleted gold reserves at a time when resources were scarce.

=in 1923, germany refused to pay, and the french occupied its leading industrial are, ruhr.

=germany retaliated with passive resistance and printed paper currency recklessly.

=with too much printed money in circulation, the value of the german mark fell.

=in april, us dollar was equal to 24,000 marks; in july, 353,000 marks; in august, 4621,000 marks and in december, 98,860,000 marks.

=meanwhile, the prices increased.

cartloads of money was required to buy a loaf of bread.

= these were the events which lead to economic crisis in germany.

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