Explain why the German economy experienced recovery between 1924 and 1929.
The German economy experienced massive recovery from 1924 and 1929, to begin, with, Gustav Stresemann scrapped the old worthless German currency, and replaced it with a new currency, the Rentenmark. By strictly limiting the amount of this currency in circulation, Stresemann was able to fix the hyperinflation crisis and stabilised the German currency. He also introduced a home building plan, he planned to build over 2 million homes from 1924-31. This created a lot of job opportunities giving more Germans a wage fixing unemployment problems. This meant that Germans were able to spend more money, therefore, the economy improved.
Another reason the German economy experienced recovery was due to the Dawes plan which was agreed to in 1924. It meant that France and Belgium would withdraw from the Ruhr, this meant that the Germans were able to use their money that they made from the Ruhr rather than the French and the Belgians taking it as it was the heart of the German industry, and its raw resources made them a lot of money therefore the Germans now had more money for themselves. Due to this, they could use the money to benefit the economy. The Dawes plan also meant that the USA lent Germany the equivalent of Forty million pounds. This helped significantly to pay off their debts meaning they had more money to keep for themselves.
The German economy also experienced recovery due to the fact that Weimar government had improved its international relations, and the allies agreed to the young plan in 1929. This reduced the reparation payments to a quarter of the cost, and the Germans had 59 years to pay. This meant that the Germans had to pay less to the allies therefore the economy improved as they had more money for themselves to spend on things like education and infrastructure.