7.4

The Economy After World War I

AP World History: Modern

The economic impact of WWI

Destruction and cost

The shift in global economic power

War debts and reparations

The reparations problem

The hyperinflation crisis (1923)

The Dawes Plan (1924) and temporary recovery

German children playing with worthless banknotes during hyperinflation
Caption: German banknotes bundled during the hyperinflation of 1923. The German mark became so worthless that children used stacks of bills as toys. This economic disaster destroyed the German middle class and undermined faith in democratic government.

The Great Depression (1929-1939)

Causes of the Depression

Global impact of the Depression

Political consequences

Government responses and economic ideologies

Different approaches to economic crisis

John Maynard Keynes and the new economics

The economic origins of WWII

Primary sources

John Maynard Keynes, The Economic Consequences of the Peace (1919)

Gustav Stresemann, German Foreign Minister (1927)

Franklin Roosevelt, First Inaugural Address (1933)

Key figures

Key events summary

Vocabulary