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Ib 20th Century History Internal Assessment: Weimar Hyperinflation

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Ib 20th Century History Internal Assessment: Weimar Hyperinflation
Part A:

How did Gustav Stresemann’s policies during the Weimar Republic bring hyperinflation under control in 1923?

This investigation evaluates the impact of the economic policies during Gustav Stresemann’s short period as the German chancellor and his influence as Foreign Minister. In order to address the question of how Stresemann’s economic policies brought hyperinflation under control in 1923, this study will analyze the significance of the occupation of the Ruhr, the financial demands of the Treaty of Versailles, the development of a new currency and the creation of the Dawes Committee. The investigation will draw from a wide array of scholarly articles, textbooks and monographs by reputable historians and economists. The topic investigated is significant in understanding the economic, social and political consequences of the 1923 hyperinflationary period, as well as in evaluating the economic policies and diplomatic strategies of Gustav Stresemann.

Part B:

The Weimar Republic under the leadership of Wilhelm Cuno faced numerous economic problems. Germany entered a period of hyperinflation from 1921 to 1923; caused by factors such as the conditions of The Treaty of Versailles, the financing of the war, the reparation payments from 1921 and the occupation of the Ruhr (Layton 48). The Treaty of Versailles signed in June 28, 1919 had economic implications on the Weimar Republic. This document defined the German loss of territories, including Alsace-Lorraine, coalmines in the Saar Area and the main part of Western Prussia. The Treaty of Versailles as well declared the confiscation of all German Property on foreign countries along with the ceding of large sums of machinery and fuel (Treaty of Versailles). During The First World War military demands were not addressed through taxation. Instead of increasing taxation, Imperial Germany “borrowed massive sums by selling war bonds” (Layton 49). When paying off the debt to those holding

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