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Discuss the Economic Turmoil in Post First World War era which led to the great depression a. End of First World War - U.S had become the world's greatest creditor, premier importing & exporting economy; Internationally dominant economy; Accounted for 42% of the world's output; Imported 40% of all exports of 15 nations the collapse of the economy had an immediate impact.
b. Producers of primary goods were devastated U.S reduced its flow of capital abroad, imposed productive tariffs; No selling of goods in the US by other countries, unemployment, disastrous impact on the economies of W. Europe
c. Production of industrial goods increased; people showed down the purchase; Over -production & over speculation (food grains)
d. Britain &France experienced post-war boom; Economies of other countries improved; Economic downturn & political instability almost disappeared;
e. All advanced economies were adversely affected by the means adopted to finance war. The normally of the 1920's was largely deceptive; Britain sold most of its overseas assets; It had to borrow more funds from the US to buy arms and ammunitions - debts; Inflation in such countries.
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