Historically, Versailles's reparations have taken the complete blame for the Weimar's years of hyperinflation; however, Versailles only tells half of the story and the Weimar's economic break down desires a critical examination of the Reichstag's macroeconomic policies. As disproportionate as reparations demanded by Versailles were The underlying fact is that they could not have caused the hyperinflation unless they in concert with the irresponsible actions of Reichstag. It is generally assumed that there was no alternative to inflationary policies in Germany immediately after the First World War, because of the costs of demobilization and reparations. However, this view fails to distinguish between political miscalculation and economic reality. Writes in Niall Niall Ferguson in an article titled Constraints and Room for Maneuver in the German Inflation of the Early 1920s for the journal The Economic History Review. Economists like Ferguson speculate that Weimar structure and inability to deal with criticizes were to blame for the great inflation. Weimar political weakness is rooted in the polarization of the German population following the contentious and in German opinion controversial negotiation that led to the Versailles treaty. The public be fractured and radicalized and as a result the radical parties of nationalist and communist doubled in size leaving any political debate being highly divisive. Writing for the Arthur van Riel and Arthur Schram support this argument and contend that the Weimar contraversal orgins and subsqental need to appease the masses explain the government's lack fiscal respocbiltuy .
The Weimar Republic is often seen as an unwished-for, improvised result of the chaos that followed World War I and of a fundamental controversy over socioeconomic conditions and matters of political representation. These conflicts had been inherited from the Wilhelm inian period, and, although economic progress and rising nationalism had muffled them after Bismarck's resignation in 1890, they were by no means settled.