Economic recovery in the 1920s

• Who was appointed chancellor of the Weimar Republic in August 1923?

  Gustav Stresemann
• What was the purpose of appointing Stresemann as chancellor?

  To end hyperinflation and restore faith
• What factors contributed to the rise of extremist parties in Germany during this period?

  Invasion of the Ruhr and hyperinflation
• What currency did Stresemann introduce to combat hyperinflation?

  The Rentenmark
• How did the Rentenmark help stabilize the economy?

  It was linked to gold and limited in supply
• What institution was established in August 1924 to control currency?

  The Reichsbank
• What was the new currency called after the Rentenmark?

  The Reichsmark
• What was the effect of the new currency on people's faith in it?

  People trusted it and it gained value
• What did Stresemann negotiate with the allies regarding reparations?

  To reduce the payments
• Who did Stresemann meet to create the Dawes Plan?

  Charles Dawes
• What did the Dawes Plan achieve for Germany's reparations payments?

  Reduced payments and American loans
• What was the total reparations bill reduced to in the Young Plan?

  2,000 million pounds
• How did the Young Plan affect taxes for the German people?

  It lowered taxes, increasing spending
• What was the overall impact of the financial plans of the 1920s on Germany?

  Increased employment and trade, creating wealth
• By what year did industrial output double compared to pre-WWI levels?

  1928
• What was a significant risk to Germany's economic recovery according to Stresemann?

  Reliance on foreign loans
• What were the key financial plans implemented in the 1920s for Germany's recovery?

  • Introduction of the Rentenmark
  • Establishment of the Reichsbank
  • Dawes Plan: reduced reparations and American loans
  • Young Plan: reduced total reparations and extended payment period
• What were the strengths and weaknesses of Germany's economic recovery in the 1920s?

  Strengths:

  • Stabilized currency and economy
  • Increased employment and trade
  • Industrial output doubled by 1928

  
  

  Weaknesses:

  • Reliance on foreign loans
  • Support for extremist parties remained
  • Economic recovery was fragile