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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