How did reparations and war debts help cause the global depression?

Reparations imposed on Germany after World War I, particularly through the Treaty of Versailles, strained its economy and contributed to hyperinflation, which in turn destabilized European economies. Additionally, war debts owed by various countries, especially in Europe, to the United States created a cycle of financial dependency and hardship. As countries struggled to meet these obligations, international trade declined, leading to economic contraction and contributing to the onset of the Great Depression. The interconnectedness of these financial obligations exacerbated global economic instability, ultimately impacting economies worldwide.