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Why did Germany suffer from a great inflation after World War?

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Why did Germany suffer from a great inflation after World War?
posted Dec 12, 2018 by Shahzaib Khan

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1 Answer

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Money supply in the country has a direct relation to the inflation. When the first world war began, the German governments increased the money supply in order to cover the soaring costs, initially of the war itself, and afterwards, of the heavy reparations that the Allies had imposed on Germany in the Treaty of Versailles which resulted in the great inflation.

answer Dec 12, 2018 by Salil Agrawal
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