ABSTRACT
The World Crisis divided the nations into belligerents and neutrals. In the former the problem facing the authorities was to make the greatest possible use of national resources for the purpose of waging war. One of the important consequences of this was the depreciation of currencies. The belligerent countries soon discovered that the worship of the "golden calf" was incompatible with the business of effectively waging war. The neutral countries began to receive considerable gold shipments. The budget figures for the inflation period cannot be taken as they stand owing to the exigencies of War-time finance. The increases in 1915 and 1916 were mainly caused by national defence requirements. The most important consequence of the War for Sweden was that she ceased to be a borrower and became a capital exporting country. Statistical evidence of some of the consequences of the banks' policy during the boom may be found in the 1924 Banking Committee's Report.
