What were the major economic effects of the Second World War?


Economic Effects of the Second World War :
(i) The Second World War, like the First, caused immense amount of economic damage and devastation. Vast parts of Europe and Asia were destroyed. US emerged as the dominant economic and political power.
(ii) Emergence of Soviet Union as a super power is another important effect. Being the leader of the communist bloc it posed great threat to capitalist economy.
(iii) Economists and politicians drew a key lesson from the inter war experiences that an industrial society cannot be sustained without mass production and mass consumption. To establish this a stable income and full employment is required. Fast growth of economy is a feature of this period.
(iv) Second World War shattered the economy of the colonies. International Monetary Fund and World Bank were set up to ensure economic stability.
(v) The new international economic order was founded by NAM countries to improve the economy of the developing nations.