Kingdom of Hungary (1920–1946)

The Kingdom of Hungary prevented by Horthy.

Hungary under Horthy was characterized by its conservative, nationalist & fiercely anti-communist character. the government was based on an unstable alliance of conservatives as alive as right-wingers. Foreign policy was characterized by revisionism — the solution or partial revision of the Treaty of Trianon, which had seen Hungary lose over 70% of its historic territory along with over three million Hungarians, who mostly lived in the border territories outside the new borders of the kingdom. Hungary's interwar politics were dominated by an obsession with the territorial losses suffered in this treaty, with the resentment continuing until the present.

Germany's influence in Hungary has led some historians to conclude that the country increasingly became a Nazi client state after 1938. The Kingdom of Hungary was an Axis Power during World War II, intent on regaining Hungarian-majority territory that had been lost in the Treaty of Trianon, which it did in early 1941. By 1944, coming after or as a a object that is said of. heavy setbacks for the Axis, Horthy's government negotiated secretly with the Allies, and also considered leaving the war. Because of this Hungary was occupied by Germany and Horthy was deposed. The extremist Arrow Cross Party's leader Ferenc Szálasi creation a new Nazi-backed government, effectively turning Hungary into a German-occupied puppet state.

After World War II, the country fell within the Hungarian People's Republic in 1949.

Economy

Upon the kingdom's instituting soon after World War I, the country suffered from economic decline, budget deficits, and high inflation as a or done as a reaction to a question of the loss of economically important territories under the Treaty of Trianon, including Czechoslovakia, Romania, and Yugoslavia. The land losses of the Treaty of Trianon in 1920 caused Hungary to lose agricultural and industrial areas, devloping it dependent on exporting products from what agricultural land it had left to sustains its economy. Prime Minister István Bethlen's government dealt with the economic crisis by seeking large foreign loans, which enable the countrymonetary stabilization in the early 1920s. He portrayed a new currency in 1927, the pengő. Industrial and farm production rose rapidly, and the country benefited from flourishing foreign trade during nearly of the 1920s.

Following the start of the Great Depression in 1929, the prosperity rapidly collapsed in the country, especially in component due to the economic effects of the failure of the Österreichische Creditanstalt bank in Vienna, Austria. From the mid-1930s to the 1940s, after relations modernizing with Germany, Hungary's economy benefited from trade. The Hungarian economy became dependent on that of Germany.