How did ww1 affect the European economy?

Answer 1

it caused a depression in Germany.

When the war ended germany had to surrender and they were forced into the LAMP act. Land Army Money and Pride. they were forced to give up all land they occupied and the ruhr land, this was a very industrial part of germany, so germany couldn't produce in its factories so they lost money. there army was cut to less than 1000 so they were left weak. they had to pay 6,6Billion in reparations to britain France and Belgium, and even now that's allot of money so the country was in debt. and the german people lost there pride because they had to take the blame for the war.

germany didn't have the money to pay back the 6,6billion so they decided to print more money this lead to inflation and then to try and combat this they stopped paying the reparations. but Br Fr Be were not happy so they began to take german resources like coal, the german government told the workers in areas that were occupied to go on strike but they still needed to be paid so the government printed more money causing hyper inflation.

then they loaned money form america and there was the wall street crash and that caused all hell too. it was a bad time :)