Why was Weimar Germany's economy able to recover by 1929?

• Who was Gustav Stresemann?

  • In 1923, the Weimar Republic was on the verge of collapse socially and economically
  • Gustav Stresemann became Chancellor in August 1923 during the hyperinflation crisis
• The Rentenmark (1923)

  • Owned a state-owned bank.
  • New currency was intoduced in Nov 1923
  • Eventually becomes the Rentenmark
  • Tied and limited to the gold mark which ended the hyperinflation
• Dawes Plan (1924)

  • April 1924
  • Temporarily reduces the amount of reparations paid yearly.($50 million per year)
  • US agreed to quire loans to Germany
  • Calls off passive resistance in Ruhr
  • Helps trades, employment and confidence in government
• The Young Plan (1929)

  • $6.6 million to $2 million
  • Germany was given a further 59 years to pay the debt
  • Helps give people spending power (less power on tax)
• The Locarno Pact

  • 1st December 1925- treaty between Germany, France, Britain, America.
  • Germany accepts borders in France and accepts peace with Germany
  • Allies agreed to open talks
• The League of Nations

  • September 1926, Stresemann managed to persuade other countries to let them join the League of Nations.
  • set up after WW1
  • Given a place on the council to help make decisions.
• Kellogg-Briand Pact

  • Promise not to use war to achieve foreign policy aims
  • Shows Germany working alongside other countries and improves their world status