<P> The Depression of 1920--21 was a sharp deflationary recession in the United States and other countries, 14 months after the end of World War I. It lasted from January 1920 to July 1921 . The extent of the deflation was not only large, but large relative to the accompanying decline in real product . </P> <P> There was a brief post--World War I recession immediately following the end of the war which lasted for 2 years, complicating the absorption of millions of veterans into the economy . The economy started to grow, though it had not yet completed all the adjustments in shifting from a wartime to a peacetime economy . Factors identified as contributing to the downturn include: returning troops which created a surge in the civilian labor force and problems in absorbing the veterans, a decline in labor union strife, changes in fiscal and monetary policy, and changes in price expectations . </P> <P> Following the end of the depression, the Roaring Twenties brought a temporary period of economic prosperity . </P>

What caused the economic depression after world war 1
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