Why did Germany's economy nosedive following World War I? * Huge war reparations * Severe political turmoil * Poor economic policies * Loss of military capabilities

Germany's economy nosedived following World War I because of huge war reparations. The Triple Entente made Germany pay war debt for the widespread damage that was caused during World War I by Germany (most exclusively) and it's allies. This was a plan to make sure Germany would take longer to re-arm and would think twice about waging war, however this proved ineffective, as World War II ensued not too long afterwards.