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Economic crisis and government response 1918-1924 - Coggle Diagram

- - - - He recognised that the policy of passive resistance had failed to end the French occupation of the Ruhr. He therefore initiated the policy of fulfilment. He planned to end the occupation by meeting the terms of the allies with regard to reparations.
    - - German workers would return to work and hand the French the coal which they demanded. In the long term, Germany would make the reparations payments demanded by foreign governments.
    - - Stresemann also introduced policies designed to end hyperinflation. The ending of passive resistance helped to resolve the crisis by meaning that the government need not pay the striking workers in the Ruhr.
    - - Stresemann also initiated deep spending cuts, with some civil servants receiving pay cuts by more than 50%. Stresemann also slashed benefits and welfare spending.
    - - Working with the economist Hjalmar Schacht, the government introduced the Rentenmark in 1923. The Rentenmark was tied to the value of the 1913 mark, giving it a degree of currency stability. The government mortgaged land to the value of 3.2 billion and issued this exact amount, committing itself to keeping the currency stable. The Rentenmark was extremely successful and old economics returned with trust in the currency.
        
        The Reichsmark was introduced in 1924, with its value tied to the value of Gold.
    - - Right wing resistance
        
        Stresemann’s policies were successful but also deeply unpopular. Right-wingers dismissed fulfilment as a betrayal of Germany- leading to the 1923 Beer Hall Putsch. On the left, he was torn apart for cutting benefits to the poor and unemployed.