Economic recovery, 1923–1929

In November 1923, Gustav Stresemann (the German Chancellor and later Foreign Minister) created a new, temporary currency called the Rentenmark, which was linked to the value of gold. This helped lower hyperinflation, and people started to trust German money again.
In December 1923, Stresemann signed the Dawes Plan, which meant America lent Germany money to rebuild their industry so they could afford to make reparations and repay loans.
The Dawes Plan was later replaced by the Young Plan (1929) which reduced reparations payments and extended the timeline, thus further helping to stabilise the German economy.
However, this reliance on foreign loans meant Germany had not developed a self-sustaining economy, making it vulnerable.

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