The Great Depression (1929-34) was attended with momentous consequences in the economic as well as in the political sphere

The great world depression that had started with Wall Street crisis in 1929 hack a remarkable impact on the economy of world and it also affected the then political order of the world.

On the economic sphere this economic crisis had caused the problem of unemployment and poverty. In Germany where industrial development had uplifted the masses economically became unemployed as the industries stopped manufacturing of the goods. This also caused financial deficit to governments of Germany, England, France and USA.

Ultimately to cope up with the situation British government had to abandon the gold standard and to adopt the policy of devaluation of Sterling in 1931. England also adopted cheap money policy. All the countries of Europe adopted policy of protection and imperial preference. In American policy of New Deal was adopted to face the new economic challenges.

As democratic forms of government had not been able to solve the problems generated by the Economic Depression, in some of the European countries dictatorial rule emerged. Another important change that occurred on the political sphere was the fall of the Labour government in England.

People in Europe started opposing capitalism and supporting socialism as it aimed social welfare. Due to this crisis a kind of very practical nationalism emerged in Europe which lastly resulted in economic cum political rivalry which was the most important cause of the Second World War.