A:

The Marshall Plan was a U.S.-sponsored program implemented following the second world war to aid European countries that had been destroyed as a result of the war. Following World War II, the United States needed to formulate a plan to help rebuild war-tattered Europe, and help create a stronger economic environment for Europe as a whole.

The plan was first laid out by U.S. Secretary of State George Marshall during an address at Harvard University in 1947, and was subsequently authorized by Congress as the European Recovery Program (ERP). The Marshall Plan gave over $13 billion in aide to European nations and was key in revitalizing the post-war economies of these nations. The plan focused on modernizing both business and industrial practices across Europe, while reducing trade barriers between European nations and the United States. By 1952 U.S. funding ended, the economies of all the European recipients surpassed pre-war levels and the plan was considered a success.

For more, see War's Influence On Wall Street.

This question was answered by Lovey Grewal.

RELATED FAQS
  1. Why does the IRS withhold income taxes from employee paychecks?

    In the midst of WWII, the U.S. government ran into trouble funding the war effort. The problem did not originate from citizens ... Read Answer >>
  2. What does "buy on the cannons, sell on the trumpets" mean?

    All the events and news that happen around the world can have a great impact on the stock market. Very often, if a war breaks ... Read Answer >>
  3. Is there a world currency? If so, what is it?

    There is no such thing as a world currency. However, since World War II, the dominant or reserve currency of the world has ... Read Answer >>
  4. What is the difference between International Monetary Fund and the World Bank?

    Learn about the International Monetary Fund and the World Bank and how they are differentiated by their respective functions ... Read Answer >>
Related Articles
  1. Insights

    The Marshall Plan and the Revitalization of Post War Europe

    The Marshall Plan helped revive the economies of Western Europe after WWII largely by reforms that created greater economic cooperation in the region.
  2. Investing

    War's Influence On Wall Street

    Blitzkrieg? Dawn raids? Sounds like the markets and the battlefield have a few things in common.
  3. Investing

    4 Commodities Affected By World Conflicts

    What happens to commodities when political disagreements lead to war?
  4. Insights

    The Pros And Cons Of Price Wars

    Cheaper prices for the customer may seem great, but aggressive price cutting has a downside.
  5. Investing

    Will Star Wars Be Killed By Its Own Hype? (DIS, HAS)

    As Dec. 18 draws near, the expectations around Star Wars are ballooning. Will the movie franchise be able to live up to expectations?
  6. Trading

    The History Of Money: Currency Wars

    Find out how conflicts have changed the role money plays in our lives.
  7. Trading

    3 Questions To Find Your Trading Plan

    Ask yourself these three questions to figure out which strategy is best for you.
  8. Insights

    May the 4th Is With Disney (DIS)

    The Walt Disney Company is trying to convert May the 4th into a mainstream phenomenon.
  9. Investing

    A Look At National Debt And Government Bonds

    Learn the functions of the U.S. Treasury, and find out how and why it issues debt.
RELATED TERMS
  1. Foreign Aid

    Foreign aid is money that one country voluntarily transfers to ...
  2. The Marshall School Of Business - USC

    The business school at the University of Southern California. ...
  3. Trade War

    A negative side effect of protectionism that occurs when Country ...
  4. Price War

    When companies continuously lower prices to undercut the competition. ...
  5. War Bond

    Debt securities issued by a government for the purpose of financing ...
  6. War Risk

    1. The possibility that an investment will lose value because ...
Hot Definitions
  1. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
  2. Portable Alpha

    A strategy in which portfolio managers separate alpha from beta by investing in securities that differ from the market index ...
  3. Run Rate

    1. How the financial performance of a company would look if you were to extrapolate current results out over a certain period ...
  4. Hard Fork

    A hard fork (or sometimes hardfork) is a radical change to the protocol that makes previously invalid blocks/transactions ...
  5. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  6. Ethereum

    Ethereum is a decentralized software platform that enables SmartContracts and Distributed Applications (ĐApps) to be built ...
Trading Center