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Topic 5: Economic Developments (golden age) - Coggle Diagram
Topic 5: Economic Developments (golden age)
A. Political and currency stability:
Streseman became chancellor after Cuno resigns
SPD agreed to join a RW coalition for the first time- the 'grand coalition'
September 1923- he calls off 'passive resistance'
Nov 1923- the worthless mark scrapped for the Retenmark
financial expert Schacht largely responsible for linking the currency to Gold
Streseman started austerity- cutting govt spending and pay of public sector workers- spending came back into balance
SPD left coalition over this, forcing Streseman to resign and was replaced by Marx (30/09/23
B. Reparations and the Dawes Plan 1924:
streseman knew that reparation issue had to be settled and lenient terms renegotiated
Dawes was a US banker who said Germany would pay £6.6 billion
but it would be over a longer payback period and the amount Germany would pay would be based on industrial output and reviewed each year
the USA would also loan Germany 800 million marks
Passed in the reichstag despite opposition from DNVP and Nazis
French started leaving the ruhr by 1925
C. The Young Plan 1929
French refused to leave Rhineland until permanent settlement negotiated
both sides handed the matter to businessman Young
Young Plan reduced reparations down to £1.8 billion and gave until 1988 to pay
annual instalments were fixed and no get out clauses
France, Britain and Germany agreed to pull all troops out of the Rhineland by June 1930
The Nationalist Reaction:
DNVP and Nazi formed the Harzburg Front
demanded that the young plan be put to the people In a referendum alongside the dismantling of ToV
AH outshone DNVP leader Hugenburg and got 14% in the referendum