Dollar gap

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Dollar gap is an economic term from English denoting a situation where the stock of US dollars is not sufficient to satisfy the demand of foreign customers. The word gap here specifically refers to the positive difference between exports and imports , ie the active balance of the US trade balance after World War II , which led to the difference between the need for dollars and their limited supply.

The lack of dollars suffered mainly from European states after World War II , specifically in 1944-1960. The result was the risk of a slowdown in foreign trade, which depended on the convertibility of European currencies into dollars . Then working Bretton Woods monetary system was a key dollar key service used in international transactions .

Between 1946 and 1951, the United States accumulated trade surpluses . The result was a shortage of dollars, as Europe needed to finance its imports from the United States without being able to balance its balance with its exports . This shortcoming was addressed by creating new dollars and draining them out of the United States to provide payment to other states, which was also one of the goals of the Marshall Plan . Furthermore, the introduction of clearing houses ( European Payments Union ).

In the long run, the dollar gap was solved by US balance of payments deficits, a period of so-called dollar glut .