Demise and disintegration : the economic consequences of the Great War in central Europe

In 1914, Austria-Hungary was less prepared for war than any other great power in Europe, both militarily and economically. By 1918, the First World War had exhausted its economic potential. Yet, the Habsburg economy was capable of waging war, even one that required mass mobilisation, but not a long war. The destabilizing impact of the war and the contraction of the Habsburg economy really began in the last years of the conflict.