Hyperinflation

• The government printed more money

  Solution that would pay off debts in worthless marks, war loans of over £2.2 Billion and the industrialists were able to pay off their debts too
• Caused a chain reaction, so much money in circulation but not enough goods to buy with it, prices and wages rocketed, soon people realised this money was worthless

  Workers needed wheelbarrows to carry home their wages

  Wages began to be paid daily instead of weekly

  Prices of goods were skyrocketing
• Middle-class families lost the most as they would find all their savings would’ve bought a house in 1921, by 1923 couldn’t even buy a bread

  Pensioners found that their monthly pension couldn’t even buy a coffee

  Government lost the middle-class support
• August 1923

  A new government under Gustav Stresemann took over

  Called off passive resistance in the Ruhr

  Called in the worthless marks and burnt them, replacing them with a new Rentenmark

  Negotiated to receive American loans under the Dawes Plan

  Renegotiated the reparation payment
• Economic crisis was solved

  Right wing had another problem they could blame on the left wing

  Many linked this to ToV, many Germans did not forgive them
• The Dawes Plan

  Proposed April 1923 Agreed September 1924

  Germany was loaned 800 Million Marks from the USA

  Reduced the annual payments
• The Young Plan


  Proposed August 1929 Agreed January 1930

  Reduced the total amount of reparations by 20%

  Germany was to pay £2 Billion Marks per year but 2/3 could be postponed each year if necessary
• The Locarno Pact

  1925

  Re-establish Germany as a leading European nation (restore German power and prosperity) Stresemann accepted Germany’s western borders

  Germany, Britain, France, Belgium and Italy signed the treaty
• The Kellogg-Briand Pact

  1928

  Treaty to ‘promise’ that states would never use war to solve conflicts or disagreements

  Originally signed by USA, France and Germany
• The League of Nations

  1919

  Peace conference, Germany joined in 1926 although they were banned before

  Unanimous vote procedures which is new and innovative to ensure all around fair votes

  5 main countries got an overall say