Question: What happened to the world economy after World War I? (scroll down for answer)




Answer: There was a global depression, and the new governments formed after the war struggled to deal with it.  Specifically, in Germany, the new democratic Weimar Republic attempted to handle their economic problems by printing more money. This devalued the currency, and immense inflation occurred. This further made the economy spiral out of control. In Italy, there was immense unemployment and high inflation as well.

Even in the United States, there was a Great Depression by 1929, as farmers overproduced crops, banks failed, and the stock market crashed. Franklin Delano Roosevelt was elected President, and attempted great reform movements in his New Deal. His hope was to reform the banking system, and provide jobs in government sponsored building projects.


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