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The dollar gap in 1947 refers to the shortage of U.S. dollars faced by many countries, particularly in Europe, following World War II. This economic condition arose as nations struggled to finance imports and rebuild their economies amid widespread devastation. The gap highlighted the need for foreign aid and prompted the U.S. to initiate the Marshall Plan, providing financial assistance to help European countries recover and stabilize their economies. This move was crucial in preventing economic collapse and fostering global trade.

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