ABSTRACT
If there was a period of relative stability between 1924 and 1929, it was soon ended by economic and political developments between 1929 and 1933.
The Wall Street Crash was the catalyst for economic crisis as the short-term loans and investments, poured into Germany by the United States after 1924, were suddenly recalled. This resulted in a massive cutback in industrial production which, in turn, led to increased unemployment levels. The banking system was seriously affected by the collapse of Kredit Anstaldt in Vienna in 1931. Germany was clearly in no state to be able to continue reparations payments, which were cancelled at Lausanne in 1932.
