First page Back Continue Last page Overview Graphics
Light at the end of the tunnel
1948 the Marshall Plan directed $3 billion of its European aid package to Britain
- Part of Cold war repositioning of US
- £1 = $4.03 was reduced to £1 = $2.80
- Made British exports more competitive
- Imports more expensive
- But did annoy Colonies and Dominions who traded in Sterling. Less of a reason to stay in the Empire!
Austerity was still a reality for the population, but at least money was available for the various Welfare State reforms.