After the turmoil of 1918-23, liberal constitutional democracy had survived in Germany, the years 1924-29 became know as the ‘golden years’, economic and political stability returned to Germany, this was largely down to the policies of Gustav Stresemann. Who improved Germany’s situation both economically and politically, through different actions such as the Dawes plan. However although all of this is true, towards the end of the time period Germany began to struggle due to their reliance on foreign investment, such as that of America, which led to economic crisis’s in Germany. The years 1924-29, may have had some flaws, but they were mainly golden.
Germany’s economy had fallen to pieces, in 1923 the Rhineland had been invaded by France and Germany was suffering from hyperinflation, this however was brought to an end in 1924 by Gustav Stresemann, Stresemann helped Germany’s economy greatly. In 1924 Germany and America negotiated the Dawes plan. In this plan it was agreed that the French would leave the Ruhr and that the reparations could be paid over a longer period of time, it was also agreed that Germany would receive an international loan which would help them to cover 4/5 of the reparation payments, this helped to stimulate the German economy. In 1924 a new currency was introduced, the rentenmark, this alongside Americas investment, led to monetary stability and an end to hyperinflation. This was important for Germany as it meant that the German citizens regained confidence to spend and invest in the German markets, the new currency and US backing led to an increase in foreign investment, leading to rapid growth in the German economy. The German government invested their new found wealth wisely, leading to an increase in new factories, industry, infrastructure and employment. This showed that this period was economically golden as Germany had recovered from hyperinflation and in turn turned their economy and industry into one of the most rapidly growing in Europe, by 1929 Germany was producing 33% more than it had been in 1913, despite losing its major industrial areas under the treaty of Versailles.
Stresemann’s foreign policy also reinforces the view that the period 1924-29 was Germanys golden years. Between 1924-29 Stresemann helped to end German isolation, Stresemann did this through the policy of Fulfilment, this meant that Germany adhered to the terms in the treaty of Versailles, this was