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The imposed gift of Versailles: the fiscal effects of restricting the size of Germany's armed forces, 1924–9

Hantke, Max ; Spoerer, Mark


Weimar's politicians used to attribute the continuous budget crises after the currency stabilization of 1923–4 to the burden put on the German economy by the Treaty of Versailles, in particular the reparation payments. This argument, which is still popular, neglects the fact that the restriction of the German military to 115,000 men relieved the German central budget considerably. In a ...


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