According to the lesson why did Germany's economy nosedive following World War 1?

Germany's economy nosedived following World War I primarily due to the harsh reparations imposed by the Treaty of Versailles, which burdened the nation with enormous debt. The loss of industrial territory and resources further weakened its economic stability. Additionally, hyperinflation ensued in the early 1920s, eroding savings and leading to widespread unemployment and social unrest. This economic turmoil laid the groundwork for political instability and the eventual rise of extremist movements.