After the War of Independence, many businesses were started in a short time period and the industry was developed on loans, that eventually led to financial difficulties. As Minister of Finance, Strandman proposed a plan for economic redevelopment, that was supposed to reduce loans, lower the state budget and achieve a trade surplus by raising customs duties. At first, his actions saw little effect and he was criticised from both left- and right-wing parties, but eventually the Estonian mark stabilized, integrating the Estonian economy more with Europe. He also supported building the economy on agriculture rather than transit between Russia and Europe, regarding Denmark as a model agricultural country. In the media, his policies were mockingly called UMP (Uus majanduspoliitika" – "New Economic Policy" ("nep")) and KUMP (Kõige uuem majanduspoliitika" – "Newest Economic Policy") after the economic policy in the Soviet Union at the time. In May 1924, Strandman didn't blame his predecessor Georg Vestel for deliberately creating hyperinflation, only for sheer optimism about his policies.