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How far was there economic and political stability in Germany in the years 1924-29?

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Introduction

How far was there economic and political stability in Germany in the years 1924-29? After the turmoil of 1918-23, liberal constitutional democracy survived in Germany up until the disastrous Wall Street Crash of 1929. These years become known as the "Golden Years" of the Weimar Republic and, thus indicate that some levels of economic and political stability were shown through the rebuilding of Germany as a country between 1924-29although on shaky foundations in terms of security. This was significantly due to the friendlier attitude of the Allied powers, through foreign loans and investment from the Dawes Plan and the high level of political ability and standing shown by Gustav Stresemann through the Rentenmark introduction and Foreign Policy of Fulfilment. Gustav Stresemann was ultimately the key figure in ensuring the introduction of some economic and political stability in the aftermath of the previous crisis 1918-23, through his high level of political skill and standing. When Stresemann came to power, Germany was in turmoil; with deadlock in the Ruhr, runaway inflation and threats of insurrection in many parts of Germany. ...read more.

Middle

However, although the Dawes Plan did seriously improve Germany's economic standing, the improvements were introduced through the help of the USA and other allies. I therefore don't believe that the stability was as strong as it could have been, if Germany had improved their economic problems by themselves because, if the USA demanded their money back Germany would be back in a bad state again. Stresemann's Rentenmark intervention also helped to stabilise the Germanys economic condition during the 'Golden Years'. Stresemann and Luther (the Minister of Finance) recalled the old inflated bank notes and replaced the 'mark' with the Rentenmark. In the absence of sufficient gold reserves, the new currency was backed by a mortgage on Germany's agricultural and industrial resources. It was a novel and rather shaky form of security, which relied heavily upon foreign goodwill for its acceptance. Such goodwill and friendliness was forthcoming as a result of Stresemann's settlement of the Ruhr crisis. This not only allowed for the currency to be stabilised, but also re-opened negotiations on the question of Germany's reparations payments. ...read more.

Conclusion

After the turmoil of 1918-23 it was evident that somebody needed to restore political and economic stability within Germany. To some extent Stresemann achieve this through his political skill and ability resulting in him being one of the most important factors in causing the stability. However, although the policies that he negotiated and introduced were successful in terms of increasing political and economic stability , they seriously lacked security which was a big problem. The Dawes Plan, Rentenmark Introduction and finally the foreign policy of fulfilment all heavily relied on either foreign investment e.g. USA 800 million gold marks from the Dawes Plan or, good will from the Allies themselves in terms of the Rentenmark introduction and treaty of Locarno. So, although stability was secured during 1924-29 if relations worsened between Germany and the allies, this stability could easily almost be instantly removed and result in Germany being no better off than they were before the 'Golden Years' of the Weimar. Stresemann didn't allow this to happen which is why I prioritised him as the most important factor in ensuring the stability stayed secure. ...read more.

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