Policy Article
Guns and Growth: The Economic Consequences of Defense Buildups
Kiel Report, 2
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War
Geoeconomics
Europe
USA
Fiscal Policy & National Budgets
Growth
Innovation and Structural Change
Defence
This paper investigates how an increase in military expenditures affects an economy. It is written in the context of rising geopolitical tensions that have spurred increased military spending in the United States, Europe, and other economic areas. It draws on a large literature in macroeconomics, public finance, defense and peace studies, economic history, and the study of productivity to evaluate the short- and long-run consequences of rearmament.
