The Second World War

by Antony Beevor

Life improved in Germany during the second half of the 1920s, mainly due to massive American loans. But the world depression, which began after the Wall Street Crash of 1929, hit Germany even harder once Britain and other countries left the gold standard in September 1931. Fear of another round of hyper-inflation persuaded Chancellor Brüning’s government to maintain the Reichsmark’s link to the price of gold, making it over-valued. American loans had ceased, and protectionism cut off German export markets. This led to mass unemployment, which dramatically increased the opportunity for demagogues promising radical solutions.