economic recovery

• November 1923 - set up the new state owned bank - Rentenbank - which issued a new currency - Rentenmark - to replace the hyperinflated worthless one

  the supply of notes was limited and the value was tied to the price of gold and backed by the German industry and agricultural land

  people began to trust the new currency
• August 1924 - set up a new national bank which was given control of the currency - Reichsmark - and backed by gold reserves

  German money was now trusted at home and abroad

  hyperinflation ended businesses could grow and recover
• April 1924 - Stresemann agreed on the Dawes Act (US plan) - which would mean US banks gave loans to the German industry

  the allies were now reassured that they would get their reparation payments

  the French agreed to leave the Ruhr
• August 1929 - the Young plan - reduced the amounts of the total reparations from £6.6 billion marks to £2 billion and gave Germany a further 59 years to pay it back - the French would leave the Rhineland

  lower repayments - lower taxes

  lower taxes meant people had more money to spend which created more demand for jobs