As the USA removed this investment, Germany fell into another economic crisis.

They had used these, as explored above, to rebuild their economy after the war and hyperinflation crisis, and invest in new schools, businesses and hospitals. In the years following World War I, there was spiraling hyperinflation of the German currency (Reichsmark) by 1923. back to the economy, it went to pay off the war debt.

The Economic Consequences of the Peace↑. Germany had to pay an astonishing 132 billion marks for reparations of the WWI (the initial value was 226 billion, but they real amount was 50 billion...) to the victorious countries (mostly to France really). This partialy destroyed the German economy. Germany was reliant on international loans and investment. Within a seven-year period Denmark, the Habsburg monarchy, and France were vanquished in short, decisive conflicts. This was the title of a book published in 1919 by the great British economist John Maynard Keynes (1883-1946), who had worked for the Treasury on financing the British war effort. The German people passively resisted the occupation (workers and civil servants refused orders and instructions from the occupation forces), thus leading to a further strain on Germany's economy and contributing significantly to inflation (a rise in the prices of goods & services). Those were asked in gold to avoid any devaluation. The total value of U.S. exports grew from $2.4 billion in 1913 to $6.2 billion in 1917. This was done even though the country’s industry, agriculture, and commerce were not expanding because of the heavy reparations that had to be paid. Germany After World War I. Germany didn’t fare well after World War I, as it was thrown into troubling economic and social disorder. There are 3 Essential Questions that you should be able to answer by the end of this video. The assassination of Archduke Franz Ferdinand by a Serbian nationalist ignited WW1. The causes included the burdensome reparations imposed after World War I, coupled with a general inflationary period in Europe in the 1920s (another direct result of a materially catastrophic war). In this video we look at The Economic Crises affecting Germany in 1923. To payoff this debt after the war, the German government simply printed more money. The rapid printing of marks (the basic unit of German currency) unsupported by real … And less than ten years after the war people already were talking about the German economic miracle. 1. The German economy, in particular, was not able to regain its pre-war dynamism for a long time. President Wilson declared war on Germany in 1917 after it sank 128 U.S. passengers aboard the British ocean liner Lusitania and four U.S. boats. The Undermining of Democracy in Germany. Germany - Germany - Germany from 1871 to 1918: The German Empire was founded on January 18, 1871, in the aftermath of three successful wars by the North German state of Prussia. Germany's ascent to becoming a global economic power—known as the "German economic miracle" or Wirtschaftswunder—had its origins at the end of World War II when much of the country was in ruins. During the first two and a half years of combat, the United States was a neutral party and the economic boom came primarily from exports. At the time, observers thought that West Germany would have to be the biggest client of the U.S. welfare state; yet, twenty years later its economy was envied by most of the world. Instead of German wealth going . So the economy was bad, really bad.