Louis Johnston and Samuel H. Preparedness Agencies To oversee this growth, President Roosevelt created a number of preparedness agencies beginning inincluding the Office for Emergency Management and its key sub-organization, the National Defense Advisory Commission; the Office of Production Management; and the Supply Priorities Allocation Board.
Aftermath of World War II Among the causes can be mentioned the rapid normalization of political relations between former Axis powers and the western Allies. After the war, the major powers were determined not to repeat the mistakes of the Great Depressionsome of which were ascribed to post—World War I policy errors.
The Marshall Plan for the rebuilding of Europe is most credited for reconciliation, though the immediate post-war situations was more complicated. Institutional arrangements[ edit ] Institutional economists point to the international institutions established in the post-war period.
Structurally, the victorious Allies established the United Nations and the Bretton Woods monetary systeminternational institutions designed to promote stability. This was achieved through a number of policies, including promoting free tradeinstituting the Marshall Planand the use of Keynesian economics.
US Council of Economic Advisers[ edit ] In the United States, the Employment Act of set the goals of achieving full employment, full production, and stable prices. It also created the Council of Economic Advisers to provide objective economic analysis and advice on the development and implementation of a wide range of domestic and international economic policy issues.
In its first 7 years the CEA made five technical advances in policy making: Japan and West Germany caught up to and exceeded the GDP of the United Kingdom during these years, even as the UK itself was experiencing the greatest absolute prosperity in its history. In France, this period is often looked back to with nostalgia as the Trente Glorieusesor "Glorious Thirty", while the economies of West Germany and Austria were characterized by Wirtschaftswunder economic miracleand in Italy it is called Miracolo economico economic miracle.
Most developing countries also did well in this period. Belgian economic miracle Belgium experienced a brief but very rapid economic recovery in the aftermath of World War II. The comparatively light damage sustained by Belgium's heavy industry during the German occupation and the Europe-wide need for the country's traditional exports steel and coal, textiles, and railway infrastructure meant that Belgium became the first European country to regain its pre-war level of output in Economic growth in the period was accompanied by low inflation and sharp increases in real living standards.
However, lack of capital investment meant that Belgium's heavy industry was ill-equipped to compete with other European industries in the s.
This contributed to the start of deindustrialisation in Wallonia and the emergence of regional economic disparities. The economic growth occurred mainly due to productivity gains and to an increase in the number of working hours.
Indeed, the working population grew very slowly, the " baby boom " being offset by the extension of the time dedicated to study. Productivity gains came from catching up with the United States. Among the "major" nations, only Japan had faster growth in this era than France.
France by the s had become a leading world economic power and the world's fourth-largest exporter of manufactured products. It became Europe's largest agricultural producer and exporter, accounting for more than 10 percent of world trade in such goods by the s. The service sector grew rapidly and became the largest sector, generating a large foreign-trade surplus, chiefly from the earnings from tourism.
Italian economic miracle The Italian economy experienced very variable growth. In the s and early s the Italian economy boomedwith record high growth-rates, including 6.
This rapid and sustained growth was due to the ambitions of several[ quantify ] Italian businesspeople, the opening of new industries helped by the discovery of hydrocarbons, made for iron and steel, in the Po valleyre-construction and the modernisation of most Italian cities, such as Milan, Rome and Turin, and the aid given to the country after World War II notably through the Marshall Plan.
Japanese economic miracle A transistor radio made by Sanyo in Japan manufactured much of the world's consumer electronics during this period.Aug 21, · Watch video · The United States was the world’s strongest military power. Its economy was booming, and the fruits of this prosperity–new cars, suburban houses and other consumer goods–were available to.
The United States also recognized during the postwar period the need to restructure international monetary arrangements, spearheading the creation of the International Monetary Fund and the World Bank -- institutions designed to ensure an open, capitalist international economy.
She wanted the United States to work through the United Nations. European nations used most of the U.S. funds provided by the Marshall Plan of to stimulate their economies and .
Below title bar: events after World War II: From left to right: The Declaration of the State of Israel in ; The Nuremberg trials were held after the war, in which the prominent members of the political, military, and economic leadership of the defeated Nazi Germany were prosecuted; After the war, the United States carried out the Marshall Plan, which .
The war had vaulted the United States to a new status as the world’s leading creditor, the world’s largest owner of gold, and, by extension, the effective custodian of the international gold.
The s Business and the Economy: OverviewAt the end of the s, the American economy was still struggling with unemployment, militant labor unions, and a lack of demand for goods.
But as Europe collapsed into conflict in , the United States began to escape the effects of the Great Depression (–39). American businesses sold .