Why did the Treaty of Versailles have a negative economic effect on Germany?

The Treaty of Versailles had a negative effect on Germany's economy for two main reasons. First, the treaty imposed massive reparations payments on the new Weimar government. These reparations, which were initially set at almost 300 billion gold marks, were ruinous to the Germany economy, which experienced unprecedented inflation as the government strained to meet payment schedules. The Treaty also harmed the German economy by placing the Saar Valley, which was one of the richest industrial regions in Germany before the war, under the administration of the League of Nations. France claimed access to the region's coal. So under the terms of the Treaty of Versailles, Germany faced crippling reparations payments and the loss of one of its richest regions in industry and natural resources. These both contributed to hyperinflation, which rendered German currency totally worthless and brought the economy to a standstill by the mid-1920s.