1924-28 economic developments Flashcards

1
Q

what was the first major economic development of this era?

A

1924 Dawes Plan

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2
Q

what was the dawes plan?

A
  • US gifted a loan of short-term credits, totalling 800m marks
  • stabilised German economy after the effects of hyperinflation
  • amount of reparations paid by Germany was reduced until 1929, when it would rise to 1000 million and raised by annual increments of 2500m for 5 years
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3
Q

what developed after dawes plan?

A
  • money was fuelled into the remodelling of German infrastructure,creating jobs and limiting unemployment (around 5% at time)
  • creation of mediums of social enjoyment such as cinemas and theatres
  • short-term satisfaction however
  • placed Germany in a terrifically vulnerable position financially due to heavy reliance on american finance, invigorating political tension and angering RW traditionalists
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4
Q

what did pulzer say about the plan?

A

‘Dawes Plan loans encouraged modernisation’

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5
Q

next major economic developments?

A

role of stresemann, rentenmark, passive resistance

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6
Q

how did stresemann invigorate economic development?

A
  • stresemann, in his role as chancellor, followed by foreign minster was hugely instrumental in initiating economic recovery
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7
Q

what did he do?

A
  • reforemed currency by creating the rentenmark, where 1 rentenmark = 1 trillion old marks supported by a mortgage on all industrial and agricultural land
  • ended the policy of passive resistance in september 1923
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8
Q

what developed?

A
  • reformation of German currency was hugely significant in stabilising the economy
  • government kept tight control over the currency after it was launched to prevent any inflationary spikes. august 1924 renamed the reichsmark, backed by the german gold reserve valued at 30% of reichsmarks in circulation
  • stopping passive resistance reduced economic deficit and made first step towards reducing government expenditure. regenerated production in the ruhr, long-term benefits.
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9
Q

what did s.marks have to say about it?

A

stresemann ‘worked himself to death’ to better weimar republicanism

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10
Q

what was agricultural crisis?

A

-in 1926 there was a world surplus of grain
- less profit obtained leading to several bankruptcies
- 1928 farmers initiated a series of small scale riots known as ‘farmer’s revenge’ in protest against low prices
- in 1929 agricultural production was less than 75% of pre war levels

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