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The Effects Of War Reparations On Germany

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The terms of the treaty itself, while not that harsh, had devastating economical and psychological effects on Germany. One major term of the treaty had to do with war reparations. Germany had to pay the winning powers, most notably France, over $300 billion. The other countries on the side of the Allies were largely exempt from paying war reparations because their economies were deemed to be insufficient enough to pay the war reparations. Because the reparations had to be paid in hard currency, one of Germany’s strategies was to mass print German marks in order to buy foreign currencies or gold, which could be used to pay the reparations. This caused massive inflation of the German mark, to the point where it became completely worthless. In

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