dollar gap: meaning, definition, pronunciation and examples
LowFormal/Technical
Quick answer
What does “dollar gap” mean?
A deficit in a country's balance of payments, specifically a shortfall of US dollars needed to pay for imports from the United States.
Audio
Pronunciation
Definition
Meaning and Definition
A deficit in a country's balance of payments, specifically a shortfall of US dollars needed to pay for imports from the United States.
A broader economic situation where a country lacks sufficient hard currency (originally specifically US dollars) to conduct international trade and meet its external financial obligations.
Dialectal Variation
British vs American Usage
Differences
Both use the term identically; it originated in American economic discourse but was widely adopted internationally.
Connotations
In both varieties, carries connotations of post-war economics, Bretton Woods system, and discussions of global economic imbalances.
Frequency
Equally low frequency in both varieties; primarily found in historical economic texts.
Grammar
How to Use “dollar gap” in a Sentence
The [country] faced a dollar gap.Economists discussed the dollar gap.Measures were taken to close the dollar gap.Vocabulary
Collocations
Examples
Examples of “dollar gap” in a Sentence
verb
British English
- The Sterling Area countries were dollar-gapping throughout the 1940s.
- They feared dollar-gapping would continue.
American English
- The European economies were dollar-gapping after the war.
- The Marshall Plan aimed to stop dollar-gapping.
adverb
British English
- The economy was performing dollar-gappily (rare).
American English
- Trade was flowing dollar-gappily (rare).
adjective
British English
- The dollar-gap crisis required immediate attention.
- They analysed dollar-gap statistics.
American English
- The dollar-gap problem persisted for years.
- Dollar-gap issues dominated the conference.
Usage
Meaning in Context
Business
Used in international trade and finance discussions about currency availability.
Academic
Frequently appears in economic history, international economics, and development studies.
Everyday
Virtually never used in casual conversation.
Technical
Precise term in economics referring to a specific type of balance of payments problem.
Vocabulary
Synonyms of “dollar gap”
Strong
Neutral
Weak
Vocabulary
Antonyms of “dollar gap”
Watch out
Common Mistakes When Using “dollar gap”
- Using it to refer to any trade deficit (must specifically concern dollar shortage).
- Confusing it with 'trade gap' (which is broader).
- Using in contemporary contexts without historical qualification.
FAQ
Frequently Asked Questions
Primarily a historical term. Modern economists might use 'dollar shortage' or 'hard currency deficit,' but the specific post-WWII context makes 'dollar gap' dated.
The term specifically refers to US dollars as the dominant reserve and trade currency post-WWII. Similar concepts exist for other hard currencies (euro gap, yen gap), but 'dollar gap' is the established historical term.
A trade deficit is broader—an excess of imports over exports. A dollar gap is a specific type of trade deficit where the shortfall is specifically in US dollars needed to pay for imports from the US or dollar-denominated transactions.
Through mechanisms like the Marshall Plan (US aid), devaluation of other currencies (e.g., Sterling in 1949), import controls, and the eventual recovery of European export industries.
A deficit in a country's balance of payments, specifically a shortfall of US dollars needed to pay for imports from the United States.
Dollar gap is usually formal/technical in register.
Dollar gap: in British English it is pronounced /ˈdɒlə ɡæp/, and in American English it is pronounced /ˈdɑːlɚ ɡæp/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “None directly associated; sometimes appears in phrases like 'to plug the dollar gap'.”
Learning
Memory Aids
Mnemonic
Imagine a gap (shortage) in a pile of dollar bills that a country needs to pay for American goods.
Conceptual Metaphor
A GAP IS A DEFICIT (container metaphor where the missing dollars create an empty space).
Practice
Quiz
What does 'dollar gap' specifically refer to?