Why did Germany experience a period of recovery in the years 1923-29

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One way in which Germany experienced a period of recovery is through the work of Stresemann, and his reconstruction of the German economy, as the source states ‘the introduction of the Rentenmark stabilised the German economy’. Due to the passive resistance in the Ruhr in early 1923, the German government had a lack of money and so was forced to print off extra money to pay the German officials’ wages. However, this led to hyperinflation of the German economy - the Reichsmark - and resulted in money becoming essentially worthless and the development of a barter economy. Stresemann fixed this issue by scrapping the worthless Reichsmark and introducing the Rentenmark.

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This links to another way in Stresemann fixed the German economy, and this is through the introduction of the Dawes Plan and the Young Plan’, through a series of negotiations with the major banks of the USA, as the source states ‘The Dawes Plan of 1924 and US Loans encouraged economic recovery. The Dawes Plan issued a loan of 800 million marks to the German government, and enabled them to rebuild industry and commerce, allowing a new influx of money into the German economy, to help them repay the punitive reparations of £6600 million, which were part of the ...

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