24 Questions
What was the consequence of World War I on the international payments system?
Distortions in production and trade
Which country became the first economic power of the world after World War I?
USA
What were the sanctions imposed on Germany by the Allies after World War I?
Payments in kind, territorial cessions, demilitarization, payments in cash
What did J.M. Keynes propose regarding reparations after World War I?
Reparations are economically irrational and politically imprudent
Which two countries insisted on receiving enough reparations to cover their debts with the UK and USA?
France and Belgium
What was the consequence of World War I on the role of governments in economic decision making processes?
Governments assumed an important role in economic decision making processes
What was the main reason for the occupation of the Ruhr area by France and Belgium?
Germany's refusal to pay reparations
What was the result of the Dawes Plan in 1924?
Reduction of reparation payments and international loan grant
What was the effect of the German hyperinflation on the middle classes?
Loss of value in their savings
What were the two main explanations for the German hyperinflation?
Budget deficit and balance of payments
What were the reasons behind the increase in prices during the German hyperinflation?
Monetization of the deficit and increasing cost of imports
What was the outcome of creating the rentenmark during the mark stabilization process?
Return to the Gold Standard
What happened to the German mark in November 1923 as part of mark stabilization?
Fixed exchange rate with respect to the dollar
What led to an increase in the supply of marks as mentioned in the text?
Reparation payments and trade deficit
What was the main impact of hyperinflation on imports?
Imports became more expensive due to currency depreciation
What measure did Germany adopt to rebalance its budget during mark stabilization?
Creation of the rentenmark
What was the main impact of the Treaty of Versailles on Germany?
Forced industrialization
What was the effect of the poor functioning of the international payments system after WWI?
Distortions in production and trade
What did J.M. Keynes propose regarding the war reparations after WWI?
Reparations that are economically irrational and politically imprudent
What was the consequence of the Allies imposing sanctions on Germany after WWI?
Demilitarization of Germany
What was the role of USA after WWI in terms of global economy?
Became the first economic power of the World
How did the role of governments change in economic decision making processes after WWI?
Governments assumed an important role in economic decision making processes
What was the impact of the French and Belgian occupation of the Ruhr area in 1923?
It caused German workers to start a strike.
What was the effect of German hyperinflation on the middle classes?
It caused their savings to lose value due to inflation
Explore the significant changes in the global political and economic landscape before and after World War I, including the shift from European predominance to distortions in production and trade. Understand the impact on international payments systems, government intervention, and the rise of protectionism.
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