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The economic crisis was one of the most significant features of European history during the interwar period, particularly the Great Depression that began in 1929. It profoundly affected European economies, societies and political systems. The crisis emerged in the context of the economic instability created by the First World War and the weaknesses of the international financial system. The First World War had severely disrupted European economies. Industrial production declined, governments accumulated huge debts and many countries faced inflation and unemployment. Germany was particularly burdened by reparations imposed by the Treaty of Versailles. The German economy experienced severe inflation in 1923, when the value of the mark collapsed. Although the Dawes Plan of 1924 and American loans temporarily stabilised Germany, this recovery depended heavily on foreign capital. The Wall Street Crash of _______ ____ _________ ______ ___ _________ _______ _________ _______ __________.
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