The collapse of the German economy was a consequence of the reparations Germany was forced to pay through the Treaty of Versailles.
When the armistice of November 11th, 1918 was signed, one of the 34 terms held a promise that Germany would pay reparations to the Allies for damages resulting from the war. Six months later the Treaty of Versailles was signed with the reparations outlined but the total amount to be paid by Germany not agreed on/upon. The treaty only said that within two years a group of Allied representatives would have to determine the full amount Germany should pay. As Margaret MacMillan wrote, “This understandably brought charges from the Germans that they were being asked to sign a blank check.” It was very difficult
When the armistice of November 11th, 1918 was signed, one of the 34 terms held a promise that Germany would pay reparations to the Allies for damages resulting from the war. Six months later the Treaty of Versailles was signed with the reparations outlined but the total amount to be paid by Germany not agreed on/upon. The treaty only said that within two years a group of Allied representatives would have to determine the full amount Germany should pay. As Margaret MacMillan wrote, “This understandably brought charges from the Germans that they were being asked to sign a blank check.” It was very difficult