What caused the great economic depression of 1920`s to spread world wide?

The Great Depression of the 1920s spread worldwide primarily due to interconnected global economies and the impact of the Wall Street Crash of 1929. The crash led to a severe economic downturn in the United States, which in turn affected economies around the world through a variety of channels:

1. Trade: The United States was a major trading partner for many countries, and the sudden decline in American demand for imports had a ripple effect on economies that relied on exporting goods to the US.

2. Financial contagion: The collapse of major US banks and financial institutions led to a loss of confidence in the global financial system, causing a domino effect of bank failures and credit crunches in other countries.

3. Reparations and war debt: The economic instability caused by World War I and the Treaty of Versailles had left many European countries heavily indebted to the US. The economic downturn in the US made it difficult for these countries to repay their debts, further exacerbating the crisis.

4. Gold standard: Many countries were still on the gold standard at the time, which limited their ability to respond to the crisis through monetary policy. The fixed exchange rates and restrictions on currency devaluation made it difficult for countries to stimulate their economies.

Overall, the interconnectedness of the global economy and the shockwaves of the Wall Street Crash led to the spread of the Great Depression worldwide, causing widespread unemployment, poverty, and social unrest in many countries.

The Great Depression of the 1920s did not spread worldwide. The economic downturn primarily affected the United States and Europe, with other regions experiencing limited impact.