The Weimar Republic was created in the result of Germany's defeat in World War 1. Germany was loaded with the blame, and hated the Treaty of Versailles. Germany had rejected it but was forced to sign it in 1919. The Weimar government was not able to bring back pre-war conditions. In august 1923 Gustav Stresemann became Chancellor of Germany and foreign minster. He was apart of the German people's party. Stresemann went along way in resolving the catastrophe that was left after World War 1. Stresemann promised to carry on paying reparations and stop inactive fighting to help solve the problem of the French invasion of Ruhr, workers went back to work and meant that France could get the goods to pay the reparations, so Germany left the Ruhr. Stresemann also solved hyperinflation as goods were being produced. Because of his willingness to solve the problems of Ruhr crisis, the Allies were willing to open negotiation on reparations.
Gustav introduced a new currency and changed the useless German marks to a new currency called the rentenmark. This solved the problem of the currency losing value and hyperinflation; because people began to have confidence in the currency again the new German currency stabilised the value of money and price began to return to its normal value.
The agreed Dawes plan was signed in an agreement by the allied countries France, Britain and USA. The USA provided loans of around 800 million gold marks and allowed the Germans to start paying off their reparations and spread their payments over a longer time. This helped to solve the problem of reparations as Germanys economy could make progress, with the loans they could afford to pay reparations again. The agreed Young plan in 1929 reduced the reparations payment further. As Germany showed enthusiasm to co-operate with the allied countries this improved Germany’s relationships with them. There was a withdrawal of allied troops from Germany by 1930 and in 1926 Germany was allowed to join...
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