Eli5: how do nations give “money” to other nations? Is it currency? Or raw materials?

Question

Take the Marshall Plan for example. The US gave 13 billion dollars to European nations to rebuild their cities. But what is meant by 13 billion dollars? Where does the money come from? Is it paid in gold? Do the countries receive the money, then buy resources with the money? What happens when enormous sums of money is lent, and then the lending country inflates or deflates their currency?

In: 0

Answer 1

Large transfers of money between countries is digital. Instead of transferring any materials its all moved on computers.