What began the collapse of the German economy in the 1920s?

The collapse of the German economy in the 1920s was initiated by the severe reparations imposed by the Treaty of Versailles after World War I, which placed a heavy financial burden on Germany. The situation worsened with hyperinflation in the early 1920s, triggered by the government's decision to print money to pay reparations and support the economy. This led to the devaluation of the German mark, skyrocketing prices, and widespread poverty. The economic instability ultimately set the stage for the rise of extremist political movements, including the Nazis.