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

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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. Although from a nationalistic background, he had become a republican because he was horrified by the alternatives. His background and ability gave him greater respect than previous Weimar politicians. Stresemann started by ending the deadlock in the Ruhr by lifting the policy of passive resistance and by agreeing to pay reparations once again. Stresemann and his fellow ministers also dealt effectively with the revolutionary disturbances of the Left and the Right, including Hitler’s Munich Putsch in order to slightly regain political stability. Stresemann’s initial actions therefore acted as the catalyst, catapulting Germany away from the previous crisis in order to slowly rebuild and improve its damaged economy and relations as a country, under his leadership.

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Foundations were set down in order to rebuild Germany and establish both political and economic stability, through Stresemann’s negotiation and implementation of the Dawes Plan in 1924, to ensure the recovery of the German economy. Under this five-year plan, the Reichsbank (the German National Bank) was reorganised under Allied supervision. Germany received a loan of 800 million gold marks, mainly from the U.S.A which in turn aided economic reconstruction within Germany. The system of reparations payments was altered so that the total was reduced and the period of repayment increased. Germany was to pay one billion marks per annum for ...

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