Stresemann's Solutions

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Introduce a new currency

Old money was replaced with the Rentenmark

Positive: Accepted quickly and inflation was bought under control

Negatives: People had still lost their savings, they felt cheated and blamed the Wiemar Republic

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Persuade the French to leave the Ruhr

Called off Passive Resistance and promised to keep up the payments

Positives: The French left the Ruhr

Negatives: It was unpoular especially with right-wing extreamists, it was a sing of weakness and giving in to the French

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Improve Germany's relationships with other countri

1925: Lacarno Pacts - series of treaties with Britain, France, Belgium and Italy not to invade each other

1926: League of Nations - great power status and Germany had a say in decisions made

1926: Stresemann awarded the Nobel Peace Prize

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Continue to pay reparations

1924: The Dawes Plan - longer time to pay back reparations.

1929: The Young Plan - lowered teh amount of meney germany had to pay back from 132,000 million marks to 37,000 million marks

The Dawes Plan did not lower the amount of money German had to pay back - 'a second Versailles'

People thought that Germany shouldnt be paying reperations at all

Under the terms of the young plan Germany would be paying Reperation untill 1988

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Get help to the rebuild the economy

German government improved housing, hospitals, schools and roads

Loans were given to private German firms

US firms set up factories in Germany

Pensions and wages rose for some

 The german economy was very dependant on the US economy

wages did not rise for all

Farmers lost out as food prices stayed low; farmer only earned half the national average wage

Unemployment never fell below 1 million, in 1928 it started to rise

Rich people in Germany had to pay higher taxes

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