Why Did Germany Lose World War I?

World War I is still today one of the most critical historical events of all time. Its’ political, social and economic repercussions were extremely serious and took a huge hit on those who were involved and even to those who were not. Peace settlements were imposed on the defeated powers - Germany, Austria, Bulgaria, Hungary and Turkey - as a way to deal with the devas-tating results of the war. Empires collapsed, new nation states were formed whilst others disappeared, countries suffered from loss of territory and post-war trade and production were disrupted due to the new boundaries that were redrawn. All these measures created very complicated outcomes to those who suffered from the peace treaties, in particular Germany after the well-known
In 1921, as Germany was not able to fulfill the re-quests from the settlement, several towns were invaded by the Allied troops. In order to find a solution to be able to finance the war, Germany decided to print colossal amounts of paper money. This resulted in hyperinflation. Since more money was made available, the prices were forced to go up by outrageous amounts, which sooner or later meant that the Reichsbank Mark became worthless. What this meant was that Germany was not able to pay anything using paper Marks and instead, the reparations had to be paid in material
Closing factories and big indus-trial points led to high levels of unemployment as well as the fall in the val-ue of wartime savings. It was also a period of high inflation all over Europe. Some countries suffered more than others - such as Austria, Hungary, Po-land and Russia that also fell into the trap of printing more money as an in-centive to fight the post-war economic pressure. However, the Fiat money system is extremely complex and uncertain as it’s based on long-term policy objectives rather than short term and it can only function under stable insti-tutions – something that Europe wasn’t after the