Recovery from Hyperinflation

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  • Created by: Vader26
  • Created on: 07-03-22 12:08
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  • Recovery from the 1923 Crisis
    • Political
      • New government set up
        • Called off passive resistance against the French in the Ruhr
          • Replaced worthless mark with Rentenmark
            • French left Ruhr and and hyperinflation stopped
              • Support for extremist parties dropped
    • Improved foreign relations
      • Stresemann negotiated with the Allies to reduce reparations and secure loans for Germany
        • He negotiated the Allies by signing the Locarno Treaties
          • Treaty 1 - Rhineland Pact  --  France, Belgium and Germany agreed not to attack each other, Germany agreed to keep troops out of the Rhineland, Italy and Britain would stop them fighting
          • Treaties 2-5  --  Germany agreed with France, Belgium, Poland and Czechoslovakia that any dispute between them should be settled by talks
          • Treaties 6-7  --  France signed "Treaties of Mutual Guarantee" with Poland and Czechoslovakia. These said that France would make sure Germany wouldn't break Treaties 2-5
    • Economic recovery
      • Stresemann persuaded the Allies to accept lower reparation payments
        • Dawes and Young Plans
          • With a stable economy, Germany no longer suffered inflation
            • Between 1924 and 1929, foreign banks were no longer hesitant to loan money to Germany
              • Nearly 3 million new homes
              • In nearly every town, new factories and public facilities sprung up
              • New roads and railways
              • New airships, ocean liners, radio stations, film studios and telephone networks

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