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International Trade and German Reparations

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The reparations payments by Germany required under the Treaty of Versailles posed a problem: How were tax payments by German citizens to their government in German marks to be converted to dollar payments to United States lenders? Explain how these transfers might have been successfully carried out. Why was Germany unable to make the reparations payments as required under the Treaty of Versailles?

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The only way Germany could repay reparations in US dollars would be to have US dollars in their foreign reserves. The normal way for this to happen would be for Germany to .....

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The only way Germany could repay in US dollars would be to have US dollars in their foreign reserves. The normal way for this to happen would be for Germany to sell product to the US or other convertible currency countries for US dollars or for currency readily convertible like British Pounds, Swiss Francs, French Francs, etc. Another way would be to borrow US dollars or ...

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