Germany, 1890-1945

Economically

Dawes Plan- In 1924, Charles Dawes, an American banker, designed a plan so Germany could pay its reparations.

• Instalments were temporarily reduced to £50 million a year
• US banks agreed to make loans to the German industry. The allies felt more confident that they would get their reparation payment.

It was a success for Germany because the currency was stabilised and inflation was under control. Also, it helps decrease unemployment and Germany was able to meet the Treaty's obligations

Young Plan

In August 1929, a committee,  set up by the Allies and led by an American banker called Owen Young, proposed a plan.

Advantages

• It reduced the reparations debt from £6.6 billion to £2 million.
• The payments could be made over a longer time (up…