Reasons for recovery 1923-29 2.0 / 5 based on 1 rating ? HistoryWeimar Republic 1918-29GCSEEdexcel Created by: SabihaHalimCreated on: 08-08-20 12:09 Recovery From 1923-29 Germany managed to recover from the immediate crisis of 23 Still significant weaknesses in the economy Gustav Stresemann, the new chancellor, palyed an important role 1 of 7 Rentenmark November 1923- Stresemannset up the rentenbank and issued a new currency called the Rentenmark Supply of the notes were tightly controlled Its value tied to the price of gold so it had real value -Encouraged more public confidence August 1924, Reichsbank given control of the new currency renamed the reichsmark Hyperinflation over Reichsmark was good for the recovery of the economy but couldn't bring back the losses from thr hyperinflation crisis 2 of 7 International loans after WW1 Germany paid the reparations payment to Britain and France Britain and France paid back war loans to USA USA made loans under Dawes and Young Plan 3 of 7 The Dawes Plan 1924 1924- American Banker, Charles Dawes designed a plan so Germany could pay its reparations Instalments temporaraily reduced to 50 mil a year US banks agreed to make loans to German industry Allies more confident that they would get reparations payments 4 of 7 Young Plan 1929 August 1929- commitee set up by allies and american banker, Owen Young proposed a plan Young Plan reduced German reparations payment to 2 billion not 6.6 billion Payments over a longer time period Lower reparations meant lower taxes for German people There was lots of opposition from extreme political parties, like the Nazi's Because they felt they were extending the burden for future generations 5 of 7 Improvements in the economy industrial output doubled by 1928 and finally passed pre-war levels employment & trade increased 6 of 7 Problems with Economy Extreme political partoies against Germany paying reparations Fragile Economy-Economic recovery depended on American Loans 7 of 7
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