Money Matters: An IMF Exhibit -- The Importance of Global Cooperation

Destruction and Reconstruction (1945-1958)

Part 5 of 6


Conflict &
(1871 - 1944)

Destruction &
(1945 - 1958)
The System
in Crisis

(1959 - 1971)
the System

(1972 - 1981)
Debt &

(1981 - 1989)
Globalization and Integration
(1989 - 1999)

U.S. Dollars: Fueling the Economy

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Ford Motors plant 1947

Even after Marshall Plan aid ended, the United States continued to provide economic assistance to other countries. In addition, as the "Cold War" heated up, US military expenditures abroad rose, particularly during the country’s involvement in the Korean War (1950-53). And even more important, US investment abroad grew substantially after World War II.

The outflow of US dollars provided liquidity, which fueled the growing world economy.

IMF Loans

Egypt's 1956 takeover of the Suez Canal provoked an unsuccessful and costly joint U.K.-French military operation. The United Kingdom and France suffered severe financial consequences as a result. They turned to the IMF, which provided them with its largest financial assistance to date.

  • $262 million to France
  • $1.2 billion to the United Kingdom

US Government Foreign Aid and Spending

Just as the Marshall Plan aid was ending, US military and nonmilitary aid picked up. The continuous outflow of US dollars helped reduce Europe's balance of payments deficit and the worldwide dollar shortage.





The Post War World Cooperation Tested Cooperation
Cooperation for Recovery: The Marshall Plan U.S. Dollars: Fueling
the Economy
Economic Miracles
in the 1950s

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