"Explain why the German economy recovered in the years 1924-29"
Gustav Stresemann
Dawes Plan
Use information of your own.
The German economy recovered between the years 1924-29 because of beneficial changes occurring that aimed to improve it. Gustav Stresemann invented the Rentenmark, which was used from the earliest days of 1924 as a temporary currency, distributed on limited amounts based on property values. The Rentenmark gave German people more confidence in their economy, and was a benefit overall as it helped to stablise the German economy. As Stresemann's new currency created more security and a chance of recovery for the economy, it was beneficial change that began the recovery of the economy in 1924-29.
The Dawes plan also positively impacted the German economy's recovery, as it introduced agreements about reparation Payments. After WWII, Germany was made to pay reparations to opposing countries as detailed in the Treaty of Versailles, but with the Dawes Plan introduced in 1924, these terms were agreed to change by France, Britain and America. America offered loans to Germany, which helped the economy recover, but also allowed them to meet reparation payments. These had also changed, as payments now began at 1B marks per year, and would increase to reach 2.5B per year in four years time. Overall, as the loans and changes to payment sizes were introduced through the Dawes Plan, the changes impacted Germany positively, and allowed the economy a chance to recover.
Finally, in 1929, the Young Plan was introduced. It was agreed that Germany would pay reparations for a longer time, but meant yearly payments were smaller and more manageable for the country. While payment time was extended, the Young Plan was yet another positive change made, as Germany could ensure they'd be able to pay annual reparation fees consistently, as well as give them a larger amount of money each year to put towards restoring and supporting their economy which, by 1929, was beginning to return to a more suitable and manageable part of Germany prior to the Wallstreet Crash.