1. Europe Post-WWI

2. Economic Uncertainty  Only Japan & U.S.A emerged from WWI financially stable  U.S. Loans  Nearly every European nation is bankrupt, and Europe’s domination in world affairs declines.

3. Ineffective Government  Fledgling Democracies in Germany, and Austro- Hungarian countries.  Parliamentary countries with too many parties (France, Italy)  Weimar Republic  Coalition governments pave the way for authoritarian leaders later

4. Weimar Problems  No German tradition of democracy  Too many parties to effectively govern  Blame by people for losing wwi, and accepting the Treaty of Versailles

5. German Economy  Hyper Inflation: By 1923 $1=4 trillion Marks  Dawes Plan: $200M loan from the U.S. Rescheduled reparations payments.  Dawes plan works

6. Lasting Peace?  France & Germany agree to never make war against each other again  Germany is admitted to the League of Nations  Kellogg-Briand peace pact: “Renounce war as an instrument of national policy”