"Europe and the Great Depression of the 1930s" - Study Notes

The Great Depression of the 1930s was a result of World War I. Germany had to pay off war debts to France and Britain, but in the meantime, they borrowed money from the U.S. There was a chain connecting everyone, and when Germany finally failed to pay France and Britain, the chain of money stopped. France and Britain could not pay the U.S. back, and the stock market crash ensued shortly afterwards. Its severity was due to the chain reactions and interlocking of the different countries. Germany was suffering major inflation, and simply could not pay or make up its debt to the other countrie…