Indeed economic life in Europe was struck a triple blow in those years. The First World War distorted domestic employment, destroyed trade and devastated whole regions—as well as bankrupting states. Many countries—in central Europe above all—never recovered from its effects. Those that did were then brought low again in the Slump of the Thirties, when deflation, business failures and desperate efforts to erect protective tariffs against foreign competition resulted not only in unprecedented levels of unemployment and wasted industrial capacity but also the collapse of international trade
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