How did the Great Depression in America affect the economies of Europe?

The Great Depression was a global event, and many historians (and some observers at the time) located many of its origins in Europe. It is not as simple as saying that the Depression began in the United States and spread to Europe. But certainly the collapse of the American financial system reverberated in the economies of Europe. After World War I, the major European nations had received billions of dollars in loans from American banks...

The Great Depression was a global event, and many historians (and some observers at the time) located many of its origins in Europe. It is not as simple as saying that the Depression began in the United States and spread to Europe. But certainly the collapse of the American financial system reverberated in the economies of Europe. After World War I, the major European nations had received billions of dollars in loans from American banks and the US Treasury, both of whom were reluctant to write off these obligations even when it became apparent that they were hindering Europe's economic growth. Basically, the Great Depression was brought on by a collapse of the international banking system. Bank failures in the United States led to bank failures in Europe, because they were dependent, some more directly than others, on American capital. But at the same time, European bank failures led to similar problems for American financial institutions because they held so many European assets. So the effects of the Great Depression were similar in European nations as in the United States. What differed from nation to nation, both within Europe and elsewhere, were the responses of individual governments.