Why did some new European govern- ments survive and others fail during the 1920s?

History

1 answer:

tangare [24]3 years ago

4 0

Economic depression make many democracies became weak and they became threatened for the communism and dictators.

The 1929 Crisis was a consequence of the great expansion of credit through money supply (issuance of money and bonds) carried out by the Federal Reserve System (a type of US Central Bank) since the early years of the 1920s. from 1929, this expansion had to be stopped by the Government, since the adjustment of accounts needed to be done. The Government then stopped expanding the money supply and began to operate a loan restriction policy. Fearing the currency's devaluation, many people and companies withdrew their reserves from banks, initiating a recessionary process.

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Their foreign trade went down by about 50%

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The Great Depression occurred around August 1929 and lasted till around March 1933.

It was a period in which all the nations including the wealthy and the poor had ugly experiences in terms of economic sustenance and financial capability.

Asides from the downward spiral in individual income, tax revenue, profits, and prices of commodities and services, the nation's limited foreign trade went down by about 50%.

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