new policies

• New currency:

  stresemann introduced the new renten mark

  + Inflation was brought under control

  • those who lost their savings never were compensated
• Dawes plan ( 1924 ):

  stresmann organised loans from the USA which helped start the economy

  + us loans caused industrial production to each pre-war levels, wager went up and cost of living went down

  + German govenment improved housing, hospitals, schools and roads

  + Germany was given longer to pay reparations

  + stresmann ended passive resistance, and the french left the ruhr

  • food prices were low, so farmers were poor
• the young plan (1929)

  the young plan reduced the amount of reparations Germans had to pay and supported economic recovery

  + the amount Germany had to pay was reduced to under £2 billion

  + the young plan led to the final removal of troops from the RUHR

  + lower reparations payments saved the government money which it used to cut taxes and invert to create more jobs

  • some germans were upset to still be paying, but only 14% voted against