The German Economy
Period Rule Details
1914-1923 Imperial - War bonds
Germany - Loss of land and territory
- Reparations
- Occupation of the Ruhr and Passive Resistance
1924-1929 Stresemann - 1924 Dawes Plan
- 1924-31- 2million houses built and a further
200,000 renovated
- 1925-29: German exports rose by 40%
- 1929 Young Plan
- Rentenmark
Negatives
- 1926- Production declined
- 1927- Agricultural depression started
1930-32 Bruning - Aimed to balance the budget, prevent inflations
and get rid of the burdens of reparations
- Succeded in ending payment of reparations-
cancelled at the Lausanne Conference in 1932
at the height of the depression
Negatives
- Collapse of Danat and 4 major banks in June
1931 revived fears of financial crisis
- Emergency decree- 600,000 allotments for
unemployed people in Eastern Prussia. Junker
estates deemed this as ‘agrarian Bolshevism’ -
weakness highlighted as Bruning relied solely
on the confidence of Hindenburg for security
and did not recognise the futility of this crisis
1933-45 Nazis - ‘Guns or Butter’
- Hjalmar Schacht(minister of economics 1934-
37): banking and control of capital, low-interest
rates and rescheduled debts
- Assitance for farming and small businesses-
tariffs maintained, subsidies and grants
- State investments: 1935 RAD and public works
- Balance of payments problem: fear of rapid
increase in demand would lead to inflation/ the
emergence of trade deficits
- Schact’s new plan: Bilateral trade treaties,
Reichsmark currency, Mefo Bills
- Goring’s 4 Year plan: expand rearmament and
achieve autarky
- Regulate imports/exports
- Increase raw material production
- ersatz (substitute products) to increase
Period Rule Details
1914-1923 Imperial - War bonds
Germany - Loss of land and territory
- Reparations
- Occupation of the Ruhr and Passive Resistance
1924-1929 Stresemann - 1924 Dawes Plan
- 1924-31- 2million houses built and a further
200,000 renovated
- 1925-29: German exports rose by 40%
- 1929 Young Plan
- Rentenmark
Negatives
- 1926- Production declined
- 1927- Agricultural depression started
1930-32 Bruning - Aimed to balance the budget, prevent inflations
and get rid of the burdens of reparations
- Succeded in ending payment of reparations-
cancelled at the Lausanne Conference in 1932
at the height of the depression
Negatives
- Collapse of Danat and 4 major banks in June
1931 revived fears of financial crisis
- Emergency decree- 600,000 allotments for
unemployed people in Eastern Prussia. Junker
estates deemed this as ‘agrarian Bolshevism’ -
weakness highlighted as Bruning relied solely
on the confidence of Hindenburg for security
and did not recognise the futility of this crisis
1933-45 Nazis - ‘Guns or Butter’
- Hjalmar Schacht(minister of economics 1934-
37): banking and control of capital, low-interest
rates and rescheduled debts
- Assitance for farming and small businesses-
tariffs maintained, subsidies and grants
- State investments: 1935 RAD and public works
- Balance of payments problem: fear of rapid
increase in demand would lead to inflation/ the
emergence of trade deficits
- Schact’s new plan: Bilateral trade treaties,
Reichsmark currency, Mefo Bills
- Goring’s 4 Year plan: expand rearmament and
achieve autarky
- Regulate imports/exports
- Increase raw material production
- ersatz (substitute products) to increase
