What was the impact of the First World War on the health of world economy
Dear Student,
The impact of the World War 1 on the world economy was as follows.
1. Due to the diversion of human and material resources to the war, production fell in many parts of the world, particularly Europe.
2. Due to the fall in production, there was a sharp rise in prices of essential items like food.
3. Countries imposed restrictions on trade, capital flow, and immigration.
4. The war weakened the gold standard on which the major currencies of that time was based. Countrie suspended the gold standard in order to print more currency. But this contributed to inflation.
5. The United States emerged as the most powerful economy in the world during the war.
Regards.
The impact of the World War 1 on the world economy was as follows.
1. Due to the diversion of human and material resources to the war, production fell in many parts of the world, particularly Europe.
2. Due to the fall in production, there was a sharp rise in prices of essential items like food.
3. Countries imposed restrictions on trade, capital flow, and immigration.
4. The war weakened the gold standard on which the major currencies of that time was based. Countrie suspended the gold standard in order to print more currency. But this contributed to inflation.
5. The United States emerged as the most powerful economy in the world during the war.
Regards.