Stresemann Years (1923-29)

Question 1

How did stresemann deal with hyperinflation?

Answer 1

• he ordered short cuts in government spending to try and reduce the national debt
• he introduced new German currency “rentenmark”
• he negotiated a fixed table for Germans reparation payments in the Dawes plan 1924

Question 2

What evidence is there is there of a more stable economy under stresemann 1924-29?

Answer 2

• certain sectors if he economy prospered chemical company’s
• exports rose by 40% between 1925-29
• unemployment and inflation remained low between 1924-29

Question 3

What evidence is there of improved living standards under stresemann?

Answer 3

Wages rose every year between 1924-29

Question 4

What was the main weakness of the German economy 1924-29?

Answer 4

Germany’s economic recovery was too dependent on the USA - when the effects of the Wall Street crash and Great Depression hit Germany loans dried up and the USA demanded immediate repayment of loans

Question 5

What evidence is there that the German economy has not fully recovered by 1929?

Answer 5

• agriculture, farmers incomes was 44% below average
• unemployment did not fall below 1.3million and levels were climbing before 1929
• overseas trade was sluggish and Germany always imported more than exported