Global Causes of the Great Depression

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What were some of the global causes of the Great Depression?

Some global causes included the stock market crash of 1929, reduction in consumer demand, bank panics, high tariffs, and severe agricultural distress.

How did protectionist trade policies contribute to the Great Depression?

Protectionist policies such as high tariffs reduced international trade, exacerbating economic difficulties by hindering economic recovery and retaliatory tariffs from other countries.

Which economies felt the early impacts of the Great Depression?

The United States, Germany, and the United Kingdom were among the first to experience economic decline due to the Depression.

How did overproduction contribute to the global economic downturn?

Overproduction led to excess supply with no corresponding demand, causing prices to plummet and businesses to collapse, which contributed to unemployment and decreased purchasing power.

How did American banks' failures impact Europe during the Great Depression?

The collapse of American banks led to a withdrawal of American loans from Europe, which were crucial for post-WWI recovery, leading to financial crises in European economies, particularly Germany.

Did currency devaluation play a role in exacerbating the Great Depression globally?

Yes, countries devalued their currencies to make exports cheaper in an attempt to boost economies, resulting in trade wars and competitive devaluations which worsened global financial stability.

What role did debt from World War I play in the Great Depression?

The high reparations and inter-allied debts strained national economies, especially Germany's, and became unsustainable once the global economy collapsed, exacerbating the crisis.

Were there regions unaffected by the Depression?

Few regions were entirely unaffected, but the Soviet Union was relatively isolated due to its self-sufficient policies and non-participation in global capitalist markets.

Which international conferences attempted to address the global economic crisis?

The London Economic Conference of 1933 was an effort to combat global economic instability, but it achieved limited success as nations prioritized their interests.

How did the Gold Standard affect the global impact of the Depression?

Adherence to the Gold Standard limited countries' ability to expand their money supplies and stimulate economies, exacerbating deflation and economic stagnation globally.


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