2.1 - economical developments
Party: DVP which was centre right
Roles: chancellor 1923 and foreign minister 1923-1929
His number one priority was the stabilization of the economy
ending passive resistance which encouraged new relations
issuing a new currency: the rentenmark in november 1923, this replaced the reichmark. the exchange rate was 1 rentenmark:1trillion reichmark
Balancing the budget : expenditure was cut, taxes raised and 300,000 civil servants were let go.
Stresemann stabilized the economy by introducing a new currency to abolish the old one.
it was an attempt to fix the reparation problem
it was a temporary fix
proposed on April 1924 and agreed in September 1924
repayment stayed the same 1 billion marks for the first 5 years and 2.5 billion for the rest
infinite amount of time to repay it
loaned 800 million marks from the USA which couldn’t even pay for the first payment.
proposed on august 1929 agreed in January 1930
amount was to be reduced by 20% Germany was to pay 2 billion marks per year, 2/3 of which could be postponed each year
some thought it wasn’t a big enough reduction and postponement meant that they would constantly remain in debt
payed over 59 years to end in 1988, but people were worried that the economy would never recover
loans available by american, coordinated by JP Morgan, this meant that Germany became dependent on American success. This meant that the American depression would effect them heavily.
foreign investment as others gained confidence inn the country
overall in 1924-28 the economy did improve
improved industry
standard of living increased and wages increased
inflation kept low
working class benefited
Limits
not recovered from the war
shortage of credit material based on the availability of loans
uneven recovery chronologically and across different parts of the economy
Party: DVP which was centre right
Roles: chancellor 1923 and foreign minister 1923-1929
His number one priority was the stabilization of the economy
ending passive resistance which encouraged new relations
issuing a new currency: the rentenmark in november 1923, this replaced the reichmark. the exchange rate was 1 rentenmark:1trillion reichmark
Balancing the budget : expenditure was cut, taxes raised and 300,000 civil servants were let go.
Stresemann stabilized the economy by introducing a new currency to abolish the old one.
it was an attempt to fix the reparation problem
it was a temporary fix
proposed on April 1924 and agreed in September 1924
repayment stayed the same 1 billion marks for the first 5 years and 2.5 billion for the rest
infinite amount of time to repay it
loaned 800 million marks from the USA which couldn’t even pay for the first payment.
proposed on august 1929 agreed in January 1930
amount was to be reduced by 20% Germany was to pay 2 billion marks per year, 2/3 of which could be postponed each year
some thought it wasn’t a big enough reduction and postponement meant that they would constantly remain in debt
payed over 59 years to end in 1988, but people were worried that the economy would never recover
loans available by american, coordinated by JP Morgan, this meant that Germany became dependent on American success. This meant that the American depression would effect them heavily.
foreign investment as others gained confidence inn the country
overall in 1924-28 the economy did improve
improved industry
standard of living increased and wages increased
inflation kept low
working class benefited
Limits
not recovered from the war
shortage of credit material based on the availability of loans
uneven recovery chronologically and across different parts of the economy
