why did germany recover 1924-29

• economic polices


  • nov 1923 - stresemann introduced a temporary foreign currency
  • based upon a mortgage of all land and currency
  • each rentenmark exchanged for 1 trillion of the old marks
  • 1924 - stresemann was able to set up the reichsbank - a new independent bank, which handled the control of the new currency
  • 1924 - the reichsmark was introduced to replace the rentenmark - this was a new currency that was trusted in both germany and overseas
  • the resorted faith in Germany's financial system, ended hyperinflation and allowed the german economy to grow
• american loans

  • dawes plan = US loans of 800 million gold marks
  • opened the way for foreign capital to flood into germany - £25.5 billion in loans
  • used to boost industry and build factories
  • 1923-29 - industrial output doubled
  • young plan - reparations bill reduced to £2 billion
  • allowed for further investments in industry
  • this helped boost industrial production and provide jobs
• locarno treaty

  • germay accepted its western boards and a demilitarised rhineland
  • germany agreed that alsace-lorraine would be french and in return the french agreed not to occupy the ruhr again
  • signed voluntarily unlike TofV - seemed to end germanys bitter resentment towards her conquerors
• joined LofN

  • sept 1925, stresemann persuaded other great powers to allow germany to join LofN
  • germany was also allowed a place on the LofN council - significant because the council made important decisions
  • moderate political parties supported Stresemann's diplomatic policies and his attempts to improve relations with other great powers
  • it increased german's confidence in the WR - they could see that their country was once more accepted into the 'international family'