Please enable JavaScript.
Coggle requires JavaScript to display documents.
Recovery of the Republic - Coggle Diagram
Recovery of the Republic
Reasons for recovery
Dawes Plan
Charles Dawes, an American banker arranged a plan so Germany could pay it's reparations
-
US banks agreed to make loans to German industry. Allies felt more confident they would get their reparations payments
-
Rentenmark
-
Supply of these notes was controlled - their price was tied to the price of gold so it had real value
-
Reichsbank was given control of the new currency, it was renamed the rentenmark and hyperinflation was over
Dawes plan meant that Germany relied heavily on the US economy for their loans and if the US economy crashed then Germany's would crash also due to the heavy loaning for treaty fo Versailles reparations
-
-