Weimar Republic economic recovery

• Rentenmark


  A new state-owned currency created by Stresemann in 1923, strictly limited in supply and tied to the price of gold in Germany
• Rentenmark replaced the old currency


  Hyperinflation was brought to an end
• Rentenmark restored confidence


  Of the German people in the currency and the economy
• New German currency was trusted abroad


  International trade began to recover, helping industry to recover and easing shortages of goods
• Dawes Plan (1924)


  A plan put forward by an Allied committee led by the American banker, Charles G. Dawes, which temporarily halved reparations to £50 million per year and provided Germany with $25 billion in US loans to help German industry recover
• US loans helped German industry to recover

  German industry was able to meet reparations payments
• German industry recovered


  Industrial output doubled between 1923 to 1928
• As output increased


  International trade increased, unemployment fell as industry took on more workers, government was able to raise more taxes, increase national income, and begin to pay off debts
• Young Plan (1929)


  Reparations payments reduced from £6.6 billion to £2 billion and Germany given an extra 59 years to pay the total debt
• Young Plan lowered reparations payments


  Enabled the government to lower taxes, enabling Germans to spend more, German industry flourished and more jobs were created
• Young Plan increased confidence

  Of Germans in the Weimar Republic, resulting in 35 million (85%) voting in favour of the Young Plan in 1929
• Weimar Republic was able to recover from economic crisis, 1924 to 1929