Economy Allies set reparations at $35 billion Allies set reparations at $35 billion 1922 – Germany says it can not pay (industrial Ruhr Valley is occupied) 1922 – Germany says it can not pay (industrial Ruhr Valley is occupied) Inflation soared Inflation soared Savings of Germans wiped out Savings of Germans wiped out Mid-1920s – France reaches compromise with Germany Mid-1920s – France reaches compromise with Germany U.S provides loans – Germany has 5-year period of prosperity U.S provides loans – Germany has 5-year period of prosperity Great Depression (begins in 1929) – unemployment, etc.