Golden Years

Economic Recovery: RentenmarkHyperinflation was causing many to suffer in Germany as they didn't have enough money to pay for goods and the currency was not stableStresemann called off passive resistance and introduced a new currency (Rentenmark) new currecy stabilized economy and got rid of hyperinflation

Old currency was abolished and a new, temporary  currency was introduced, the Rentenmark. New  notes were trusted because the government  promised to exchange them for shares in land or  industry if the currency failed.  In Aug 1924, the Rentenmark was replaced by a  new permanent currency called the Reichsmark. A  new independent national bank, the Reichsbank, was  also created to control the currency. 

Causes: Ruhr CrisisEffects: trust in banks and stable economy

Dawes Plan: Loans given to Germany from USA to stimulate economy - made reparations installments per year smaller

Cause

Cause: hyperinflation and Ruhr CrisisEffect: made Germany's economy prosper and got rid of hyperinflation

Young Plan: Reparation amount went down to 2 billion marks from 6.6 billion marks- gave Germany more time to pay them

Locarno Treaty: confirmed borders with other countriesEffect:- stimulated Germany's international relations- step towards joining League of Natoins- showed that they were ready to move past the war and treaty- showed they were ready to be accepted as a world power- increased status in the world and people

League of Nations:Stresemann persuaded the League to accept  Germany as a member in 1926 and Germany even  gained a place on the League’s Council. - Germany was allowed to join it (finally) and was given a seat between important nations - seen as an important world power- stimulating international relations- easier to get help from Allies

Kellogg-Briand Pact:Germany was one of 65 countries to sign the  Kellogg-Briand Pact – an international agreement by  which states promised not to use war to achieve their foreign policy aims. Effect:  - This also showed that Germany had become a respectable member of the international community which led to the international community’s  willingness to sign the Young Plan of 1929. 

Rentenmark

Dawes and Young Plan

Improved International Relations