Stabilisation

The new monetary system of November 1923 and the regulation of the reparation payments through the Dawes Plan of April 1924 introduced a period of domestic political stabilisation and growing political recognition of the Weimar Republic.

However, this stabilisation brought neither a noticeable improvement in the general standard of living nor did it solve the precarious political structural problems: the lack of democratic consciousness, the inability of the parties to compromise (the government had to be restructured for almost all important political decisions) and the unclear constitutional situation (authorities of the Reich President and the Parliament).

In particular, the Dawes Plan brought American capital to Germany and led to an economic situation that remained shaky: the dependence on international payment transactions grew, the number of unemployed people remained relatively high and the economical concentration in corporate groups endangered small and medium-sized businesses.