The Central-European Economic Effects of the World War I

Ferenc SZÁVAI

doi:10.25142/cep.2014.034

Abstract

T First World War brought total economic exhaustion to the Central-European region. It caused problems in the workforce, and finances. Together with inflation, it emerged in the form of a serious government debt. The agricultural balance of the world was lost, as well as the system of financial gold standard. In this, new, Central-European region, the typical form of existence was the economy of self-supply, and the policy of seclusion. After the dissolution of the great economic unity, the national assets became the possession of the former member states of the Monarchy; however, in numerous cases it gave grounds for quarrels and complaints. Among these, in this study, I concentrated on the cases of options, pension provisions and old crown accounts.

Highlights

Introduction y28 June 1914, a war started which was conducted on a scale that had been hitherto unknown
The cost of World War I was as much as 180–230 billion dollars (1914 purchasing power); even indirect costs were over 150 billion dollars.[1]
The complicated and fragile system of international labour division, which had been designed before World War I, brought an era of welfare and prosperity for the people of Europe

Summary

Ferenc SZÁVAI

Introduction y 28 June 1914, a war started which was conducted on a scale that had been hitherto unknown. Contemporaries considered it a dual world war because on the one hand, it involved the whole world, and on the other hand, it was fought for global influence. The restructuring of the global economy was difficult, and there were great losses and considerable damages. Besides the loss of revenues from foreign investments, inflation weakened most Central European economies. Let us see how World War I affected Central Europe and what disintegrative effects it had after the Peace Treaties, following the war

Economic Depletion

Findings

The Features of Economic Disintegration