<P> Under the Dawes Plan, the German economy boomed in the 1920s, paying reparations and increasing domestic production . Germany's economy retracted in 1929 when Congress discontinued the Dawes Plan loans . This was not just a problem for Germany . Europe received almost $8 billion USD in American credit between 1924 and 1930 in addition to previous war time loans . </P> <P> Germany's Weimar Republic was hit hard by the depression as American loans to help rebuild the German economy now stopped . Unemployment soared, especially in larger cities . Repayment of the war reparations due by Germany were suspended in 1932 following the Lausanne Conference of 1932 . By that time, Germany had repaid 1 / 8 of the reparations . People were devastated about how the Weimar Republic dealt with the economy . </P> <P> Falling prices and demand induced by the crisis created an additional problem in the central European banking system, where the financial system had particularly close relationships with business . In 1931, the Creditanstalt bank in Vienna collapsed, causing a financial panic across Europe . </P>

How did the great depression impact european nations