What action did Stresemann take to help end hyperinflation?

Gustav Stresemann played a crucial role in stabilizing the German economy during a period of severe hyperinflation in the early 1920s. By introducing a new temporary currency, known as the Rentenmark, he aimed to restore confidence in the German financial system and curb the rampant inflation that had devalued the previous currency, the Papiermark.

The Rentenmark was backed by Germany's industrial and agricultural output, which gave it intrinsic value, differentiating it from the Papiermark that had been printed in excess. This strategic move helped to stabilize prices and provide a basis for economic recovery, leading to increased public trust in the currency and the government. The introduction of this new currency was a pivotal step in addressing hyperinflation and laid the groundwork for more long-term economic policies and reforms.

In contrast, raising taxes significantly might have stifled economic growth at a time when the economy needed stimulation. Printing more banknotes would only exacerbate the problem of inflation rather than resolve it. Suspending all foreign debts would also not directly address the internal economic issues contributing to hyperinflation and could harm Germany's international standing and creditworthiness. Thus, the introduction of the Rentenmark proved to be the most effective action