Weimar Economy 1924-29

Reduced Government expenditure by reducing civil servants by 700,000

Increased government expenditure by employing 700,000 new civil servants

Introduced a new currency called the rentenmark

Negotiated the Dawes plan to assist with reparations payments and the further recovery of the German economy

Reparation payments to be set at a manageable 50 million per year for five years then increased.

The German State Bank to be reorganised

Reparation payments to be canceled

Germany to receive an international loan of 800 million gold marks, financed primarily by America.

It didn’t provide enough loans

The loans were short term and could be withdrawn immediately making the German economic situation fragile

It signaled a commitment of the German government to fulfilling the terms of the treaty of Versailles including the repayment of reparations

The wealth of farmers increased by 50%

The wealth of farmers decreased by 50%

Industrial production had doubled by 1929 from pre-war levels in 1913

Real wages had increased

Unemployment and fallen in to 1 million by 1927