The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Marshall Plan

  • Francisco Alvarez-Cuadrado
Reference work entry


The Marshall Plan transferred over US$12.5 billion to Western European countries between 1948 and 1951. This article contrasts the main views on its impact on the post-war European performance. It concludes that, although the direct impact of the plan through private and public investment was rather limited, Marshall Aid provided the recipient economies with a temporary solution for the severe dollar constraint that posed a threat to the continuation of the European miracle. Furthermore the Plan played an important role in promoting collaboration among former adversaries.


Aid Marshall Plan OEEC Post-war economics 

JEL Classifications

N14 F35 
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I would like to thank Markus Poschke for helpful comments and suggestions. Of course all remaining errors are mine.


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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Francisco Alvarez-Cuadrado
    • 1
  1. 1.