History The Treaty Of Versailles Questions Medium
As a result of the Treaty of Versailles, Germany was required to pay reparations to the Allied powers for the damages caused during World War I. The exact amount of reparations was not specified in the treaty, but it was determined that Germany had to make substantial payments to cover the costs of war. The final amount was decided by the Reparations Commission in 1921 and was set at 132 billion gold marks (equivalent to around $33 billion USD at the time). These reparations were intended to compensate for the destruction of infrastructure, loss of lives, and economic hardships suffered by the Allied countries during the war. Germany was also required to provide resources and goods to the Allies as a form of payment. The burden of these reparations had severe consequences for the German economy, leading to hyperinflation and economic instability in the 1920s.