Reasons for recovery 1923-29 Flashcards
What role did Gustav Stresemann play in Germany’s recovery from 1923 to 1929?
He was the new chancellor who played an important role in Germany’s recovery.
What was the Rentenmark?
A new currency issued in November 1923, controlled by the Rentenbank, tied to gold and backed by German industrial plants and agricultural land.
When did the Reichbank gain control of the Rentenmark?
In August 1924.
What was the significance of the Rentenmark?
It marked the end of hyperinflation in Germany.
What were the Dawes Plan and Young Plan?
U.S. plans that provided loans to Germany to help pay reparations.
What did the Dawes Plan of 1924 entail?
It temporarily reduced Germany’s reparations payments to £50 million a year and included loans to German industry.
Who designed the Dawes Plan?
Charles Dawes, an American banker.
What was the Young Plan of 1929?
A plan that reduced total reparations from £6.6 billion to £2 billion, with payments extended until 1988.
What was one negative aspect of the Young Plan?
It faced opposition from extreme political parties like the Nazis.
What improvements occurred in the Weimar Republic’s economy by 1928?
Industrial output doubled and surpassed pre-First World War levels.
What factors contributed to the fragility of the economic recovery in Germany?
Dependence on American loans and opposition to reparations from extreme political parties.
Fill in the blank: The extreme political parties in Germany were against paying _______.
[reparations]
