11 months1 year−ECONOMY SHRINKAGE−19.8%Severe hyperinflation in Europe took place over production in North America. This was a brief but very sharp recession and was caused by the end of wartime production, along with an influx of labor from returning troops. This, in turn, caused high unemployment.
Recession #2 Post-World War I recession Aug 1918 –
March 19197 months3 years
8 months−24.5%−14.1% DEPRESSION The 1921 recession began a mere 10 months after the post-World War I recession, as the economy continued working through the shift to a peacetime economy. The recession was short, but extremely painful. The year 1920 was the single most deflationary year in American history; production, however, did not fall as much as might be expected from the deflation. GNP may have declined between 2.5 and 7 percent, even as wholesale prices declined by 36.8%. The economy had a strong recovery following the recession. Depression of 1920–21Jan 1920 –
July 19211 year
6 months10 months−38.1%−32.7% WILSON ALSO GAVE US THE FEDERAL RESERVE,HOWS THAT WORKING OUT?Harding inherited Wilson's mess— in particular, a post–World War I depression that was almost as severe, from peak to trough, as the Great Contraction from 1929 to 1933 that FDR would later inherit. The estimated gross national product plunged 24 percent from $91.5 billion in 1920 to $69.6 billion in 1921. The number of unemployed people jumped from 2.1 million to 4.9 million.