How Far Was There Economic and Political Stability in Weimar Germany Between the Years 1924-1929? Essay

1213 WordsMar 1, 20155 Pages
1924-1925 saw an increasing period of stability for Germany compared to previous years. Their economy improved drastically in comparison to the previous years of hyperinflation and with no uprisings the extremist threat was appearing to calm. However although things did improve it cannot be said that the Weimar Republic was completely politically and economically stable. In the late 1920s Germany’s economy was quickly returning to normality. Germany managed to clear itself of their devastating hyperinflation crisis mainly due Stresemann and his introduction of the Retenmark. Money came into the country, mainly from the USA, industrial output returned to pre war levels in 1928 and wages went up. In addition people now had the preference to spend rather than save which helped make the German economy appear buoyant. Gustav Stresemann can be seen as the main reason for turning around Germany’s political and economic stability between these years. Stresemann was chancellor in 1923 and then became foreign minister between 1924-29. Many feel he was responsible for leading Germany out of the hyperinflation crisis when he was chancellor by introducing the Retenmark, which proved to solve the crisis. His most important influence however came when he was foreign minister. His skilful diplomacy and political prowess led to Germany having an increasing role in the international community and foreign investment. The stability between these years can be seen as a result of the various agreements and pacts set up. The Dawes plan set up in 1924 was essentially a short-term agreement in order to reduce the amount of reparations Germany had to pay. However, it did mean that Germany had to agree to their bank being supervised by the Allies in order to ensure payments were made. An essential element for Germany in signing the deal was the fact that the French forces would end
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