Question

What was one main reason for massive inflation in Germany following World War I?

Answer 1

in world war I, German emperor Wilhelm II decided to fund their entire war preparation by borrowing, which massively increases Germany's financial liabilities, which led to massive inflation during world war I

Not only that, the government also has to pay the reparation of about one-third of German's territory, another huge financial expenditure for them

Answer 2

The correct answer is: "The Treaty of Versailles"

The Treaty of Versailles was signed in 1919 after WWI, by the victorious allied powers and Germany. Germany was considered guilty for all the losses beared due to the conflict and was oblied, through this treaty, to pay economic reparations to some of the victorious Entente powers.

Germany was also forced to delimitarize and to keep its armed forces and weapon production at a minimum, to guarantee that they were uncapable of undertaking an offensive action again.

These requirements severely damaged the German economy. Germany could not afford the huge reparations payments and printed money to be able to pay them, causing a big recession and an hyperinflation crisis.