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Instituto Superior de Formación Docente N°42 “Leopoldo Marechal”

Materia: Introducción al inglés con fines académicos.

Student: Daiana Cerniskov
First Term.
Morning Shift.

The treaty of Versailles had a harsh impact on the German economy. In the

first place, the treaty of Versailles forbade Germany to export or import

weapons and ships. In addition, several companies that had become wealthy

during the war, which produced and traded weapons, were in trouble after

the war, since a company needs a demand in order to produce, and in this

case, the demand for weapons no longer existed. In effect, thousands of

Germans became unemployed. Another major term of the treaty of Versailles

that affected the German economy was that Germany had to compensate the

winner countries for the damages caused during the war. Nevertheless, by

1922 Germany was unable to pay for the reparation. Therefore, in 1923 the

industrial region of Ruhr was taken by France and Belgium. As a result,

German workers embarked on a permanent strike against the Ruhr

occupation. To solve the problem, the German government decided to print

money, hoping to stimulate the economy and pay the striking workers in the

Ruhr. However, this measure led to hyperinflation because the more

banknotes were sent into circulation, the more decreased the value of the

Reichmark. Thus, the price of goods rose.