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The Economic Recession Of The Weimar Republic After Wwi

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Tom Godlewski
ECO 220
Dr. Maskay
November 25, 2014
The Economic Downturn of the Weimar Republic After WWI War over the past two centuries has evolved faster and more dynamically than any other period in human history. The advent of air forces, automatic weapons, chemical warfare and a slew of other malevolently created weapons define one of history’s deadliest wars; World War One. World War One was the first time humankind experienced carnage on that level. Cities, infrastructure and most importantly, a large portion of a generation was lost on the fronts of Western Europe. All of these things have one thing in common as well; they all cost massive sums of money. The Treaty of Versailles placed the astronomical sums required for reparations on the losing side, the people of the Weimar Republic (Germany), lead to a massive and sudden debt being thrust upon this Western Power. This economic downturn caused one of the worst cases of hyperinflation in history, as the Germans, were printing money in order to try and pay off these massive debts. To secure the peace, the Weimar Republic accepted punishment inflicted on them by the Allies, including mass payment of war reparations, reduction of territory, and acceptance of the "war guilt" clause. This led to Germany creating a new currency with the help of foreign investment under Gustav Stresemann after the economy came close to entirely collapsing. One must first analyze what was lost by Germany during what has been described as

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