dawes plan, young plan and currency reform Flashcards
what was currency reform
introduced a new currency called renthen mark and controlled the amount of money printed
4 renthenmarks = 1million old marks
when was the currency reform
1923-4
was the currency reform a permanent solution
no because even though it raised the value of money it didn’t improve the economy meaning nothing would change.
did the currency reform resolve spiralling hyperinflation
yes as money wasn’t worthless anymore
did the currency reform resolve the problem of unaffordable reparations
not in itself as the change in currency meant meant the value of the new marks was higher but without economic development it wouldn’t have solved the problem
did the currency reform solve the problem of the french troops in the ruhr
not entirely. it made the dawes plan possible but wasn’t in itself the result of the success of the french leaving
when was the dawes plan
1924
what was the dawes plan
germanys annual payments would be reduced, increasing over time as its economy improved. ( US loaned money so that this could happen)
did dawes plan resolve the french invasion of Ruhr
france would withdraw from the ruhr as germans would be able to start paying the reparations and start rebuilding their economy. eg no point in staying
did the dawes plan resolve the problem of unaffordable reparations payments
yes because they were reduced and spread over a longer period of time to make it easier
did the dawes plan have any weaknesses
the reliance of foreign loans led to severe economic depression following the wall street crash
the young plan
if economy was doing bad one year, germany wouldn’t pay that year and pay double the next.
did the young plan take place
no
did young plan resolve the french invasion of ruhr
the french agreed to leave as germanys economy was increasing and they were starting to pay the reparations
