Why did some new European govern-

ments survive and others fail during

the 1920s?

Economic depression make many democracies became weak and they became threatened for the communism and dictators.

The 1929 Crisis was a consequence of the great expansion of credit through money supply (issuance of money and bonds) carried out by the Federal Reserve System (a type of US Central Bank) since the early years of the 1920s. from 1929, this expansion had to be stopped by the Government, since the adjustment of accounts needed to be done. The Government then stopped expanding the money supply and began to operate a loan restriction policy. Fearing the currency's devaluation, many people and companies withdrew their reserves from banks, initiating a recessionary process.