Economic consequences of Trianon Before the first World War Hungary was a part of the Habsburg Monarchy, therefore the country basically relied on the market of the Empire. Being a member of the Monarchy ensured economic unity which meant common currency, common tariff and market system. In 1918 the Monarchy became disintegrated: Hungary got into a new situation; she had to reorganise her international trade, the tariff system and had to introduce own money. June 4. , 1920. : Hungarian delegation signed the peace treaty in Versailles (Grand Trianon) The Treaty contained the following conditions:
Hungarian economy after the Treaty 1. Great territorial losses railway system remained. Consequence: Transportation and travel became harder and more expensive. The system had to be reorganised. 2. Economic criris 3. Making attempts to reorganise economy 4. Solution, stabilisation The stabilisation and the adaptation for the new situation ended in 1925. The process was successful and the other countries gave Hungary a vote of confidence which meant getting more private loans (The debt of Hungary was 4,3 billion pengo in 1931). The state of economy flourished until the Great Depression in 1929.