Economic recovery

Question 1

How did Gustav Stresemann end hyperinflation in 3 months?

Answer 1

1) He called off ‘passive resistance’ of German workers in the Ruhr. This meant goods could be produced again and the government could stop printing money to pay the workers on strike.
2) He promised to begin reparation payments again. This persuaded France and Belgium to leave the Ruhr in 1925.
3) He introduced a new currency called the Rentenmark. It was stable and its value was controlled strictly.
4) He reduced government expenditure to reduce its budget deficit
5) He renegotiated reparation payments and helped create the Dawes Plan (1924) and the Young Plan (1930)