How did the dawes plan affect the economy of postwar germany?

1 answer:

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Dawes also arranged the Dawes Plan with Stresemann, which gave Germany longer to pay reparations. Most importantly, Dawes agreed to America lending Germany800 million gold marks, which kick-started the German economy.The Dawes Plan:

The Dawes Plan (as proposed by the Dawes Committee, chaired by Charles G. Dawes) was an attempt in 1924 to solve the World War I reparations problem that Germany had to pay, which had bedevilled international politics following World War I and the Treaty of Versailles.

It provided short-term economic benefits to the German economy and softened the burdens of war reparations. By stabilizing the currency, it brought increased foreign investments and loans to the German market.

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