Recovery from hyperinflation
- Created by: AKhalifa_474
- Created on: 04-04-18 13:31
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- Recovery from hyperinflation
- The Dawes Plan
- Agreed in August 1924
- Named after Charles Dawes
- Manageable payments for reparations
- 1 billion marks 1st year
- 2.5 billion marks later years
- Ruhr area to be evacuated by Allied troops
- 1925
- German Reichsbank reorganised under Allied supervision
- USA to give loans for economic recovery
- US Loans
- 800 million loan
- Next 6 years - $3,000 million in loans
- Help pay reparations
- Rentenmark
- November 1923 - restore confidence in economy
- Based on property value rather than gold reserves
- 1924 - converted to Reichsmark
- Young Plan
- 1929 - Owen Young came up with a plan
- Reduced 6.6 million to 1.85 million
- Extended 59 years
- Pay 2.05 billion marks per year
- Alfred Hugenburg and Hitler criticised
- Extent of recovery
- Big businesses benefitted from hyperinflation
- Workers had higher wages
- Farmers affected by worldwide depression in agriculture
- 1929 - industrial production went to pre-war levels
- Agricultural production - 74% of pre-war levels
- The Dawes Plan
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