Economic recovery under Stresemann
I can explain why the German economy recovered between 1924 and 1929.
Economic recovery under Stresemann
I can explain why the German economy recovered between 1924 and 1929.
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Lesson details
Key learning points
- Gustav Stresemann became chancellor during the hyperinflation crisis before becoming foreign minister.
- Stresemann ended hyperinflation by taking a number of decisive actions including the introduction of a new currency.
- Stresemann agreed two new reparations plans with the Allies: the Dawes and Young Plans.
- Industrial production and infrastructure were revitalised, reducing unemployment and boosting Germany’s status.
- Economic recovery depended on American loans and extended reparations continued to attract criticism of the Republic.
Keywords
Loans - money that is borrowed and has to be paid back, usually with an extra fee
Rentenmark - a temporary currency issued in 1923 to stop hyperinflation
Dawes Plan - an agreement between Germany and the Allies: it restructured reparations, provided US loans to Germany, and led to French troops leaving the Ruhr
Young Plan - an agreement between Germany and the Allies: it reduced Germany’s reparations by 20%, though it faced criticism for prolonging debt
Infrastructure - the basic systems and services, such as transport and power supplies, that a country uses in order to work effectively
Common misconception
Germany's recovery in the 1920s completely solved its economic problems and secured long-term stability.
Much of the recovery depended on American loans. What happens to Germany’s economy if those loans are withdrawn or if the US faces its own crisis? This shows how fragile the recovery really was.
To help you plan your year 11 history lesson on: Economic recovery under Stresemann, download all teaching resources for free and adapt to suit your pupils' needs...
To help you plan your year 11 history lesson on: Economic recovery under Stresemann, download all teaching resources for free and adapt to suit your pupils' needs.
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Explore more key stage 4 history lessons from the Weimar and Nazi Germany, 1918–39 unit, dive into the full secondary history curriculum, or learn more about lesson planning.
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