Summary 2 - The impact of reparations

Question 1

In 1921, the Reparations Commission finally imposed a reparations bill of how many dollars to be paid by Germany?

Answer 1

£6.6bn or 132bn marks

Question 2

What did the government do rather than agree to pay the reparations?
Why did this prove to be insignificant?

Answer 2

• The government resigned
• The new govt under Wirth saw no alternative than accepting the terms.

Question 3

When did Germany first ask to postpone the payments?
When did they ask for a loan to help them with the payments?

Answer 3

January 1922
Asked for a loan to help with the payments in November 1922

Question 4

Give two economic consequences of the reparations payments that Germany had to make?

Answer 4

• It was harder for the government to pay off its debts.
• The government resorted to printing more money thus creating further inflationary pressures.