WORLD HISTORY

Detailed explanation-1: -Under the Dawes Plan, Germany’s annual reparation payments would be reduced, increasing over time as its economy improved; the full amount to be paid, however, was left undetermined. Economic policy making in Berlin would be reorganized under foreign supervision and a new currency, the Reichsmark, adopted.

Detailed explanation-2: -Most significant, American and British bankers made a $200 million loan to enable German production to expand and reparations payments to begin. From 1924 to 1929, additional loans to Germany meant that net capital flow ran toward Germany.

Detailed explanation-3: -The Dawes Plan (as proposed by the Dawes Committee, chaired by Charles G. Dawes) was a plan in 1924 that successfully resolved the issue of World War I reparations that Germany had to pay. It ended a crisis in European diplomacy following World War I and the Treaty of Versailles.

Detailed explanation-4: -During the Dawes Plan of 1924-29, German borrowed abroad massively to pay reparations out of credit, a phenomenon that gave rise to the debate about the transfer problem between Keynes and his critics.

Detailed explanation-5: -Dawes plan in American English noun. a plan to ensure payments of reparations by Germany after World War I, devised by an international committee headed by Charles Gates Dawes and put into effect in 1924.