05-13-2010, 08:29 PM
After World War 1 Germany experienced one of the historyâs most speculator example of hyperinflation. The German government did not pay for the war by taxing people more heavily. Things got worse at the end of the war. A huge amount for damages (reimbursement) was demanded from Germany. The sum to be paid was fixed at £6,600,000 in 1921. Germanyâs currency loses confidence of many foreigners because Germany was unable to pay for damages. German government has to face budget deficit because value of their currency decreased too much and they have to pay more in exchange for other currencies.
Required
Keeping in view the above scenario, how the German Government finances its budget deficit after World War 1?
NOTE Give answer in JUST ONE LINE not more than that.
Required
Keeping in view the above scenario, how the German Government finances its budget deficit after World War 1?
NOTE Give answer in JUST ONE LINE not more than that.
