How did Stresemann help the Germany economy in the 1920s?

Gustav Stresemann was both Chancellor and Foreign Minister of Germany during the Weimar period in German history, a very economically unstable time. Germany was struggling to pay the reparations ordered by the Treaty of Versailles and was suffering from extreme inflation, called 'hyper-inflation'. In 1923, Stresemann called off passive resistance to the French occupation of the Ruhr, a policy which had harmed the economy and damaged productivity. However, it should be noted that this invoked a negative response from the right-wing and is seen as a direct cause of the Munich Putsch by Hitler. In 1924 Stresemann began repaying the reparations Germany owed to the Allies, and the French agreed to leave the Ruhr, ending the occupation. Stresemann appointed a new Currency Commissioner, Schacht, who created a new currency for Germany, the Rentenmark. This helped to decrease the hyper-inflation that had plagued Germany in the early 1920s. The German economy was helped even further by the Dawes Plan of 1924 which Stresemann helped negotiate. The Dawes Plan restructured reparation payments to make them easier for Germany and confirmed that Germany would receive loans from the USA. This arrangement was later developed into the Young Plan of 1929, which decreased Germany's reparations bill by 75%. Overall, Stresemann aided the German economy greatly by successfully tacking the two great strains on Weimar Germany's economy: reparations and inflation.

Answered by Taqiyah M. History tutor

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