Why didn’t USA experience huge inflation after giving USSR huge aid during WW2 and aiding Western Europe through Marshall Plan?
In: Other
After the war, those countries needed money to rebuild. Since the U.S. was on the gold standard, the countries exchanged gold for U.S. dollars, then issued their own U.S. dollar backed currency to rebuild, with the plan being to exchange U.S. dollars back to gold once they got back on their feet. However, this plan backfired when the U.S. came off the gold standard a couple decades later and the U.S. just kept all of that gold. It’s one of the main reasons the U.S. and the dollar are so dominant in the world economy today.
Latest Answers