Economic and political recovery

• Stopping hyperinfaltion

  • Stresseman called of passive resistance in the Ruhr
  • November 1923:Stresemann set up new currency called the 'Rentenmark'(Tied to the price of the land and held real value)
  • August 1924:Currency renamed as the 'Reichsmark' and palced under control of the Reichsbank.
• The Dawes plan, 1924

  • Stresseman helped to negotiate the Dawes plan
  • Helped Germany pay reparations
  • Banks in the US loaned 800 million Reichsmarks to German industries
  • Reparation installments were temporarily made 50 million a year
• The Young plan, 1929

  • Proposed to reduce German reparations
  • planned to lower total reparations from £6.6 billion to £2 billion
  • Payments would continue until 1988
  • Abruptly stopped by the Wall street crash
  • Ameican banks recall loans made to Europe
  • 1933:World trade had fallen by 60%(No chance of German success through exporting
  • German exports rose 40% between 1925 and 1929
• Economic recovery

  • 1928:Industrial production levels increased since 1913
  • 1925-29:Exports rose 40%
  • 1927:Weimar republic set up number of pension, health and unemployment schemes to help German society
• Insecurity of the economy

  • Economic recovery depended on Ameican loans
  • Unemployment was stilla big problem for Germany
  • More money was spent on imports than received on exports(Trade deficit)
• German faith in the Weimar republic grewbecause of Stresemann's domestic and foreign achievemnents causing support for extremist parties to weaken
• Locarno pact, 1925

  • Germany signed an agreement with Great Britain, France, Italy and Belgium
  • Germany recognised borders with France and the demilitarisation of the Rhineland
• League of nations, 1926

  • Germany was invited to join the league of nations
  • US president Woodrow Wilson drew up terms for the league of nations(An international peacekeeping body)
• Kellog-Briand pact, 1928

  • Germany signed the pact with 61 other countries
  • Countries agreed to disarm and not use war to settle disgareements
• Treaty of Rapollo,1922

  • Improved German-Russian relations
  • Russian communists allowed the Reichswehr(German army) to use their training camps in secret.Allowing the German army to train with tanks, which was banned under the treaty of Versailles