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By the end of World War I the Hungarian Psychoanalytic movement was strong and deeply integrated into the cultural and intellectual life of Budapest. The city was ready to be the center of the European psychoanalysis. The paper discusses how Budapest lost its growing eminence as a center, but because of the political-social changes in Hungary in the years 1918-1920. The paper will examine the two waves of Hungarian emigration between the world wars, the first in the early twenties to the Weimar Republic, and then in the thirties, to the United States and Australia. These movements of important Hungarian psychoanalysts, account both becoming weaker of the Budapest School and at the same time its influence in other countries. The author highlights the outstanding role of the American Psychoanalytic Association's setting up the Emergency Committee on Relief and Immigration in saving the lives of many European colleagues. America was open to European psychoanalysis at that time and in return immigrants facilitated the development of modern psychotherapy and psychoanalysis. The influence of Vienna, Budapest and Berlin can be traced in contemporary psychoanalytic culture in the United States. The documentation for this paper was researched in Washington, D.C., New York and London, supported by fellowships and grants from the Woodrow Wilson International Center and the Soros Foundation.