Explain why German reparation payments were essential to the survival of the international financial system in...
Explain why German reparation payments were essential to the survival of the international financial system in the 1920s
Homework Answers
One has to understand, that when world war 1 took place, no one was ready for such devastation. Hence when it happened, the one main culprit was Germany. Europe was destroyed in terms of men and material. Hence to buckup the system and also make sure that the civilian damage could be compensated, there were reparation payemnets that became essential for the fianacial system to work. The working of the exchange market had to to be kept in consideration and as there was loss of money, that would not sustain.
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