Economic stability across the Weimar period

Question 1

Economic developments between 1918-29

Answer 1

POSITIVE
• 1.8% unemployment in Germany 1921
• 1922 Treaty of Rapollo with Russia = provisions for economic development
• 1923 Streseman became Chancellor and introduced Schacht’s idea of the Rentenmark (new currency)
• 1924 Dawes Plan
• 1929 Young Plan

NEGATIVE
• 1921 Germany presented with reperations bill (£6.6mill)
• 1922 Monthly rate for inflation passed 50% = hyperinflation
• farmers getting little or no return on cost of running their farms

Question 2

Economic consequences of War

Answer 2

• Growing inflation
• National Debt rose from 5000 mill to 144,000 mill marks by 1919
• Food shortages
• Deaths from Spanish Flu
• Industrial output down 40% 1914-18
• Adjustment from war time economy
• 35% of trade on the black market
• Deaths from war

Question 3

What were the 4 factors of economy?

Answer 3

Heavy Industry
New Industry
Agriculture
Debt/ Credit