Workbook: Stresmann Years (1923-29)

Question 1

How did Stresmann deal with hyperinflation?

Answer 1

• Ordered sharp cuts in gov spending to try and reduce national debt
• Introduced Rentenmark in Dec 1923
• Negotiated a fixed timetable for Germany’s reparation payment in the Daws Plan in 1924

Question 2

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

Answer 2

• Certain sectors of the economy prospered - chemical company e.g. Farben became the largest in Europe
• Exports rose by 40% between 1925-29
• Inflation and unemployment remained low

Question 3

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

Answer 3

Germany’s economic recovery was too dependant on the USA - where the effects of the Wall Street Crash and the Great Depression hit Germany, credit (loans) dried up and the USA demanded immediate repayment of loans

Question 4

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

Answer 4

• Agriculture was in recession by 1927. Farmers’ incomes was 44% below national average
• Unemployment did not fall below 1.3 million and levels were climbing before 1929
• Overseas trade was sluggish - Germany always imported more than it exported