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THE ECONOMY IN THE INTER-WAR YEARS, image, image, image, image, image,…
THE ECONOMY IN THE INTER-WAR YEARS
post-war crisis
1918-1923
Europe experienced a significant economic crisis
characteristics
high levels of debt
loans from the United States intended to pay for the costs of war
a shortage of products
destruction of areas of agricultural lan
increase in prices
Germany
most affected country
solution
German government
circulated a lot of quantities of bank notes
were worth practically nothing because Germany had no gold
hyperinflation
1923
France noticed that they would not recive the help of German
France occupy the richest and most industrialised area of Germany
loss of this territory made the economic crisis in Germany
recover in 1920
recover from the crisis
United States and Japan were the first countries
1924
Dawes Plan
series of economic measures
aim of increasing the value of the German mark
revised and reduced war reparations payments
1925
Germany's economy began to recover.
able to pay reparations to the victorious European countries
United States also helped other European countries
roaring twenties
society changed
life was focused on enjoyment
new forms of entertainment,
Famous Hollywood film stars emerged
wall street crash of 1929
Wall Street stock market collapsed
causes
Industrial overproduction
American industry had increased production
European industry started to recover
American industry did not reduce levels of production
Companies lost money
Agricultural overproduction
American agricultural system increased the production
European countries began to produce their agricultural products
surplus of production
Speculation on the stock market and excessive bank credit
companies and individuals bought shares in companies
people and companies obtained credit or loans from the banks.
Wall Street Crash
thirteen million shares went up for sale
stock market crisis spread to banks
great depression of 1930
began with the Wall Street Crash of 1929
economic crisis led to a fall in prices
consequences
Companies closed due to a fall in sales
Wages fell and unemployment increased
world economy was affected
decrease in the standard of living
