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WWI
WWI was a global conflict that lasted from 1914 to 1918 and involved many major powers. The war caused big disruptions to the international trade, leading to inflation and economic problems. -
Treaty of Versailles
The Treaty of Versailles was a peace treaty negotiated and signed between Germany and the Allied powers after WWI at the Paris Peace conference. Under the treaty, Germany had to pay large reparations to the Allied forces to pay for the damage they caused. This placed a heavy burden on Germany's economy, leading to inflation and economic instability -
Rise of Communism
The Union of Soviet Socialist Republics (USSR) was the first communist state in the world. Communisms idea was to get rid of class distinctions, which contradicted capitalism. With this economic model, the state was able to control all economic activity. The rise of communism and its spread to places all over the world had a great economic impact. The tension between capitalism and communism caused the global economy to divide into two distinct influences. -
Stalin
Joseph Stalin was a Soviet politician and dictator who led the Soviet Union from 192 until his death in 1953. While in power, Stalin put in many policies greatly effected the economy. He wanted to modernize the Soviet economy and turn it into an industrial society. To achieve this, he set up production schedules for farms and industries in which hundreds of thousands of people were forced to work in factories. -
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The Great depression
People borrowed lots of money from the bank and spent it in the stock market to "get rich quicker". By the end of the 1920s, stocks began to go down, so investors sold their stocks. This led to people to panic. Since people borrowed money from the bank, they lost their homes and businesses, so they could pay for their loans. -
Hitler
Adolf Hitler was a German politician and Nazi Party leader who took power in Germany in 1933. One goal of Hitler's was to rebuild the German economy after the events of The Great Depression and The Treaty of Versailles. To achieve this goal, he implemented policies that aimed to create more jobs and boosting the economy, However, he also made policies of racial purity which led to the Holocaust where millions of Jews and other minorities were killed. -
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WWII
Hitler leaded the Nazis, who controlled everyday life for Germans. When he invaded Poland, Britain and France, they declared war on Hitler, starting WWII. In the war, more than 60 million people were killed with 50 countries were involved. This resulted in inflation, damaged infrastructure and more. -
International Monetary Fund (IMF)
The International Monetary Fund (IMF) was created to help countries that are in economic trouble. Its original goals included making international exchange rates for world currencies that were dependable and promoting foreign trade. Now, the IMF's goals include lending short-term loans to countries in an emergency and getting rid of corruption. -
World Bank (WB)
The head of the World Bank is appointed by the U.S. government, but it's owned by the governments of its members, who provide the funds. Its original goals included lending money to help build countries that have been torn from war and helping countries build their resources. Now, their goals include increasing the growth of developing countries and reducing the poverty in such countries. -
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Bretton Woods conference
This gathering was attended by representatives from 44 countries. There they discussed how they could prevent economic turmoil that could lead to another world war. It was here that the World Bank and the International Monetary were made. -
General Agreement on Trades and Tariffs (GATT)
The General Agreement on Trades and Tariffs, or GATT, was an agreement that aimed to get rid of tariffs and other trade barriers between countries. This allowed for more internation trade and helped promote economic growth and development. -
World Trade Organization (WTO)
The World Trade Organization (WTO) was an organization that came from the GATT in 1995. Its goals are very similar to the GATT, where they want to reduce barriers in internation trade. The WTO now aims to make it easier for good and services to move across borders.