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.

  1. How did World War II impact European GDP?

    Understand the effect of World War II on the European gross domestic product and what foreign and domestic factors influenced ... 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. Who discovered the law of supply and demand?

    Learn how the law of supply and demand affects the economy. This important economic principle is hundreds of years old but ... Read Answer >>
  4. 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 >>
Related Articles
  1. Insights

    The German Economic Miracle

    After World War II, Germany was in ruins. Learn about the country's quick rise to the third strongest economy in the world.
  2. Personal Finance

    Economic Effects Of Life After Military Service

    The end of operations in Iraq and Afghanistan will have an impact on the economy. Discover how.
  3. Investing

    Online Broker Price Wars Will Slash Earnings

    Price wars will provide online brokers with little benefit.
  4. Trading

    How the U.S. Dollar Became the World's Reserve Currency

    The U.S. dollar was first minted in 1914. Find out what occurred during the last century to make the U.S. dollar the world's reserve currency.
  5. Personal Finance

    The Worst Things That Can Happen if You Don’t Pay Your Student Loans

    You may not get U.S. marshals knocking at your door, but why tempt fate? If you fall behind on payments, you have options. Ignoring the problem isn't one.
  6. 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.
  7. Tech

    U.S. Marshals To Auction Off Seized Bitcoins

    The U.S. Marshals are auctioning off 29,656.51306529 bitcoins seized from drug site Silk Road. To be eligible, you'll need $200,000.
  8. Investing

    Bargains Still Abound in European Stocks

    For investors looking for value and growth potential, Europe is it. Here are some ETFs to consider.
  9. Investing

    Star Wars Vs. Warcraft: Comparing Franchises (DIS, ATVI)

    Find out how much money the Star Wars and Warcraft franchises make, and learn more about the impact the franchises have on their parent companies.
  10. Insights

    What Are the Different Types of Foreign Aid?

    Foreign aid can take many forms and may involve governments and private-sector contributors. Some efforts are more effective than others.
  1. Marshall Plan

    The U.S.-sponsored program implemented following the Second World ...
  2. War Exclusion Clause

    A war exclusion clause in an insurance policy excludes coverage ...
  3. The Marshall School Of Business - USC

    The business school at the University of Southern California. ...
  4. War Bond

    A war bond is a debt security issued by a government for the ...
  5. Foreign Aid

    Foreign aid is money that one country voluntarily transfers to ...
  6. Trade War

    A negative side effect of protectionism that occurs when Country ...
Hot Definitions
  1. Entrepreneur

    An Entrepreneur is an individual who founds and runs a small business and assumes all the risk and reward of the venture. ...
  2. Money Market

    The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities ...
  3. Perfect Competition

    Pure or perfect competition is a theoretical market structure in which a number of criteria such as perfect information and ...
  4. Compound Interest

    Compound Interest is interest calculated on the initial principal and also on the accumulated interest of previous periods ...
  5. Income Statement

    A financial statement that measures a company's financial performance over a specific accounting period. Financial performance ...
  6. Leverage Ratio

    A leverage ratio is any one of several financial measurements that look at how much capital comes in the form of debt, or ...
Trading Center