Why are the years 1924-29 sometimes described as the 'golden years' of the Weimar Republic?

The years 1924-29 are sometimes described as the 'golden years' of the new German Republic because they represented a period of comparative economic and social stability after the turmoil of the end of war, and the crippling hyperinflation crisis. The introduction of a new currency, the Rentenmark, in autumn 1923 by the new Chancellor Gustav Stresemann, tied the German currency's value to the price of gold, which helped to restrain inflation and made Germany more attractive to foreign investors. Between 1924-29, the German economy received over $25 billion of foreign investment - the Dawes Plan, for example, introduced in April 1924 gave Germany the means to meet the international reparations bill imposed by the Treaty of Versailles. Additionally, the French withdrawal from the Ruhr allowed for a revival in German industry, and the construction of new factories producing goods for export across Europe. By 1924, Germany's economic output was greater than both Britain and France's, and by 1929 their industrial production was higher than before the war.This economic revival had social benefits too. The German government under Stresemann began a programme of national reconstruction, building homes and roads , as well as introducing a platform of social reforms to outlaw child labour, and a basic scheme for unemployment welfare provision.

Answered by Greg B. History tutor

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