In 1923, the Weimar Republic was on the verge of collapse, but, surprisingly, the crisis was the start of a period of stability and success. The period 1923-1929 was a time when the economy boomed and cultural life flourished in Germany. It is known as the Golden Age of Weimar.
This dramatic turnabout happened because Germany was saved by two people, Gustav Stresemann and Charles Dawes.
Gustav Stresemann, a nationalist politician, realised that something needed to be done to save Germany. He was the most important politician between 1923 and 1929, however he only survived as Chancellor of a coalition government for a few months. He was a leading member of every government from 1923-1929 and his main role was as Foreign Minister.
His first action in 1923 was to organise the Great Coalition of moderate, pro-democracy parties in the Reichstag. At last, Germany had a government that could make laws. Under Stresemann's guidance, the government called off the strike, persuaded the French to leave the Ruhr and changed the currency to the Rentenmark which helped solve hyperinflation.
Stresemann also introduced reforms to help ordinary people such as job centres, unemployment pay and better housing.
Charles Dawes was the US budget director. In 1923, he was sent to Europe to sort out Germany's economy. Under his advice, the German Reichsbank was reformed and the old money was called in and burned. This ended the hyperinflation. Dawes also arranged the Dawes Plan with Stresemann, which gave Germany longer to pay reparations. Most importantly, Dawes agreed to America lending Germany 800 million gold marks, which kick-started the German economy.
Following a lowering of the war reparations after the Dawes Plan of 1924, further changes to the reparations came with the Young Plan in 1929.
The committee that looked at the reparations issue was led by Owen Young, an American industrialist. It was a committee that had been appointed by the Allied Reparations Committee. The final plan was an attempt to support German through her financial pain.