Economic Recovery

• August 1923 President Ebert appointed Straserman as Chancellor of the Republic and Foreign Secretary to try and end the hyperinflation and restore faith in the Weimar Republic
• Support for extremist parties such as the NSDAP and the Communist Party were increasing as a result of the invasion of the Ruhr and hyperinflation
• Straserman hoped to stabilize the economy and improve foreign relations to increase German support for the Weimar Republic
• Straserman stepped down as Chancellor in November 1923 but continued as Foreign Secretary until 1929
• Stabilizing the economy


  1. Got rid of the mark and set up the Rentenmark in its place to reverse hyperinflation

  2. Set up the Reichsbank to control the currency, removing it from government control

  3. Negotiated with the Allies about the reparations payment

  4. Met with Charles Dawes to come up with a plan to aid Germany's recovery (Dawes Plan)

  5. Met again in 1929 to create the Young Plan to reduce the total reparations bill and stretch the payments over a longer period
• Introduction of the Rentenmark


  Reversed hyperinflation
• Creation of the Dawes Plan


  Reduced reparations payments to aid Germany's recovery
• Creation of the Young Plan


  Reduced total reparations bill and stretched payments over a longer period
• The financial plans of the 1920s meant that employment and trade increased, creating wealth and improving the faith of the people
• Industrial output doubled by 1928 and passed pre-World War One levels
• Extremist parties opposed any reparation payments and had support in this
• Recovery was fragile and relied on foreign loans; if these were stopped or recalled, the whole thing would collapse