UNIT 2: TH

Apuntes

UNIT 2: THE INTER-WAR YEARS The First World War led Europe into an economic crisis: ■ The lack of demand for products and production difficulties. ■ War debt: o In Germany, war reparations required under Versailles led to the printing of more money, which caused hyperinflation. o France occupied the Ruhr Valley (1923-25) when Germany couldn’t continue its reparations payments. o The United States intervened to stabilize Germany with: ▪ The Dawes Plan: Germany would pay reparations gradually, starting with lower amounts that would increase as its economy improved. Besides, an international loan of US to stabilize the German economy. Mid term solution. ▪ The Young Plan: restructuration of the debt in 1929 (extended the period of time and reduced the total amount). Long term solution... but payments were suspended during the Great Depression. 1. The economy in 1919-1929 1.1. THE EUROPEAN CRISIS Ex.: Hyperinflation vid. 1) In the Germany of 1923, a loaf of bread costed... 2) According to the German people, who was to blame of this hyperinflation? ■ During WWI, the US benefitted from its distance of the conflict. It entered a period known now as the Roaring Twenties. A new lifestyle mod...