Question

How might German reparations affect the German economy?

Answer 1

Germany had suspended the gold standard and financed the war by borrowing. Reparations further strained the economic system, and the Weimar Republic printed money as the mark's value tumbled. Hyperinflation soon rocked Germany. By November 1923, 42 billion marks were worth the equivalent of one American centStep-by-step explanation:

Answer 2

Reparations were the payments which required Germany to pay to repair all the damage of the war. ... Reparations ruined Germany's economy, but when Germany failed to make its January 1923 payment, French troops invaded the Ruhr. This led to hyperinflation, and the Munich Putsch.