Please enable JavaScript.
Coggle requires JavaScript to display documents.
The economy in the inter-war years, image, image, image, image, image,…
The economy in the inter-war years
During the period between the First World War and the Second World War
the economies of European countries and of the United States went through various phases
recovery in the 1920s
the Wall Street Crash of 1929
post-war crisis
the Great Depression of the 1930s.
Post-war crisis
between 1918 and 1923, Europe experienced a significant economic crisis
Was characterised by high level of debts
and a shortage of products
as a consequence, an increase in prices
One of the most affected country was Germany
they had to suffer the crisis and pay war reparations.
As a solution, German goverment circculated large quantities of bank notes.
The enormous quantity of worthless bank notes in circulation meant that
the German people needed large amounts of money to buy basic goods
HYPERINFLATION
France realised that it would not receive the reparations it needed from Germany to help rebuild its economy.
Recovery in the 1920s
The United States were the first countries to recover from the crisis
In 1924, The United States applied the Dawes Plan
They were some economic measures
In 1925 German economy began to recover.
United States helped other European countries
Giving them loans and selling the consumer goods they lacked
Consumerism grew again and sales of consumer goods such as cars and household appliances increased
The wall street crash of 1929
In 1929, the Wall Street stock market in New York collapsed.
This was the beginning of a major economic crisis
Causes of the crisis
Industrial overproduction
during the First World War, American industry had increased production in order to supply Europe.
Agricultural overproduction
During the war, the American agricultural system had increased its production
Speculation on the stock market and excessive bank credit
companies and individuals bought shares in companies because they offered guaranteed profits.
The increasing demand for shares led to a rise in share prices which caused stock market speculation
The shareholders wanted to sell their shares.
When companies that sold shares on the stock market began to have problems
The stock market crisis spread to banks and became a financial crisis
The great depression of the 1930s
It began with the Wall Street Crash of 1929 and continued for a decade.
This economic crisis led to a fall in prices (deflation) and put an end to the prosperity of the roaring twenties.
The crisis soon spread to Europe and other parts of the world
It had some consequences because USA stopped investing
Wages fell and unemployment increased.
Economy was affected because USA reduced imports.
Companies closed due to a fall in sales and a lack of credit.
A decrease in the standard of living, generating discontent with the liberal capitalist system
As a solution they implemented The New Deal
Was a series of economic and social measures adopted by the government in order to try to stimulate demand.
