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He hopes that by establishing the economy and regaining respect from Germany in foreign affairs, Germans will feel more content with the republic.
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The supply of this new currency is limited, and its value is tied to the price of gold. Furthermore, it is backed by German industrial plants and agricultural land, having real value.
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The Allies have asked an American banker, Charles G Dawes, to resolve Germany’s non-payment of reparations, having to give huge loans to its industry. In this way, their economy begins to recover.
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This new independent national bank, is backed by Germany’s gold reserves. Finally, the German people can trust German money again and hyperinflation is ended.
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All because they are agreeing to pay reparations, and at the fact that the recovery of Germany is now dependent upon American loans.
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He had served to reassure the middle classes and strengthen the Weimar government.
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It’s a treaty between Germany, Britain, France, Italy, and Belgium, to secure borders of the nations of Europe after the First World War and to guarantee peace in western Europe.
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This is a body that solve the world's problems without resorting to war, making it less likely.
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It’s a promise of not to use war to achieve foreign policy aims, and it shows that Germany is now included in the main powers.
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In this plan, the reparations are reduced to 2 billion pounds, and Germany is given 59 years to pay it off. Lower reparations mean lower taxes for German people, giving a boost to the economy and consequently, to employment. In addition, they now have foreign Relations.
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Germany is thrown back into hard times. The Weimar economy collapsed.
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This event sparked a global economic crisis, and the USA could no longer afford to lend Germany any money.