Democracy and Dictatorships in Germany 1923-29: Golden Age

Question 1

Which of the following was more important in the economic recovery of Weimar Germany up to 1929: [10]

i) Dawes Plan of 1924
ii) Young Plan of 1929

Answer 1

i) -Dawes Plan gave a loan of 800 million gold marks to Germany
-this kick-started the economy and reinforced the new currency, the Rentenmark and also stimulated investment.
-this change was crucial in the early recovery of the economy after hyperinflation as it limited the extensive rise in unemployment
ii) -the Young Plan cut reparations to 1/4 and gave Germany until 1988 to pay.
-though this allowed Germany to move on from the Great War and focus on its own economic aims, the plan was short-lived and did not provide recovery in the same way as the Dawes Plan did
Conclusion: the Dawes Plan was more important in bringing about economic recovery as these series of loans gave confidence to German industrial markets immediately after hyperinflation was stemmed by Stresemann’s Rentenmark