How did the First World War transform US economy to make it an international creditor from international debtor?


#1

(i) The First World War was the first industrial war.
(ii) Britain borrowed large sums of money from US banks as well as from companies to pay off loans.
(iii) US though a party to war was physically unaffected. It witnessed industrial boom and increase in agricultural production.
(iv) The US was in a position to lend to European countries to recover from the shock of war. As a result, US emerged as an international creditor from a debtor.
(v) By end of war US and its citizens owned more overseas assets than foreign governments and citizens owned in the US.