Vatupic Interwar Recession

The ‘’Vatupic Interwar Recession’’ was an period of economic difficulty, variously described as a stagnation, recession, or even depression, that occurred primarily on the Vatupic subcontinent but also neighboring regions during the First Interwar Period, lasting from 1918 to the late 1920s or early 1930s. It originated in major Vatupic economies, primarily Riyata and Ta’aroha, which both largely failed to transition their economies from wartime military production back to civilian production. The massive devastation wrought by the First World War meant that there was both significant labor shortages due to war casualties as well as capital shortages due to the destruction of important industrial areas. Military spending had generally kept Vatupic economies afloat during the war, but the postwar situation became unsustainable by government spending. The resulting full employment combined with production shortages led to a period of persistent inflation that lasted from 1918 to 1924 and was exacerbated by efforts from national governments to shore up other areas of their economies.