The Economic Rollercoaster of the Interwar Period (1918-1939)

1918, order First World War. Crazy 20 years: phase dexpansio (1919.1929), phase of crisis (1921.1924), phase of valley, valley phase (1929-1939), the properiti (1924-1029) black ans 30: valley phase (1929-1939) / Dawes Plan (1024) New York stock market crash (24-10-1929) outbreak of World War II (1-9-1939). 1depresio expansion crisis indicators as: : fall in production, lowering prices, increasing Datura, internacionalsde slowdown in trade and capital goods, sectoral shocks: only affects a sector producio, textiles, chemicals ... economic crisis affects the whole of a pacer leconomia expansion phase of a valley. overproduction crisis: when there is very Exes doferta but not eaten enough, this makes lower prices. 2-return to normalcy, leconomia of the 1920s: When the war ended , leconomia affected countries regained normal capacity producio began to grow from 1918 to 1921, an k in crisis entered a price reduction, lalentiment trade and lincrement of latur, the reasons for the crisis were the United States stopped giving credits to Europe, then lowered his demand, the products are not sold lasted (1921-1922), the 2 .2 Prosperity: between 1020 and 1929, production and productivity indusrial grew 40%, this was the allegation that there was to see after the war, and a crixement intensive manufacturing chain. 2.3 imbalances in growth during the war the price of agricultural products rose, then farmers were buying debt makina and chemical fertilizers, Cuan ended the war prices fell, many farmers were unable to return the credits were left without land and increased latur field. Predicted a crisis of overproduction and so people started to invest in stock. 3 crash of 1929 deprsio of the 1930 - crash: the value of the shares rose along with much industrial production, this meant that concedisin credits for many actions on 3 September 1929 because the stock did not rise more, 24 doctubre came to 12 million venda daccions with a lawsuit almost null, then the value of titles fell sharply on day 28 were put at more than 9 million venda daccions and lendema 33 million. causes of the crash: Labus was the main cause of credit was also due to lack of demand for brokerage services in the valley economic crisis: the collapse of the stock hit a lot of banks and banks stopped giving credits, many companies have stopped paying employees. Sarrosegava part a crisis of overproduction that took down prices, many companies were up ferlos to reduce production, many agricultural and wise debt prices fell and could not pay Sels they expropriate lands, came a moment that raising agricultural prices were burning food, when rural people pasava appetite. extension of the crisis: the crisis grew, because the United States was the largest economy and one of the major countries and materials purchasing daliments other countries , this led to the fall venda in other countries.Social consequence of the valley: the valley because many workers move to part time and receive half pay, the others were left without any unemployment assistance, this made many people remain in poverty. People who worked in the field was ruined and had to leave to seek jobs in cities 4 responses to the crisis (1929-1939) - the answers were a policy of desflacio: consisted of letting the market regulate it leconomia sun, then dropped, taxes and despese Lester and reduced the number of money in circulation, this resulted in a reduction of salaries, latur rise and fall of production, the works took to the streets to protest Keynesian solution : Relaunching leconomia by Lester. Keynes said that the most important demand was the demand for afavorirla, encouraged people to consumal government collects dimposts to help the sectors most affected, Lester had to publish works start to finish with latur.'s New Deal of President Franklin d.Roosevelt: The New Deal consisted of injecting money into the economic system, THROUGH public works, the New Deal reforms were, in-financial-reform was to control the banking ,-intervention lagricultura