The term war finance, a branch of defense economics, denotes a number of measures including fiscal and monetary initiatives to fund the expenditure of a war. Such measures, broadly classified in three categories, are levy of taxes, raising of debts, and creation of fresh money supply. Thus, these measures may include levy of specific taxation, increase and enlarging the scope of existing taxation, raising of compulsory and voluntary loans from the public, arranging loans from foreign sovereign states or financial institutions, as also creation of money by the government or the central banking authority.
Throughout the history of human civilization, from the ancient time until the modern era, conflicts and wars have always involved raising of resources and war finance has remained, in some form or the other, a major part of any defense economy.
Famous quotes containing the words war and/or finance:
“The dead have been awakened—shall I sleep?
The world’s at war with tyrants—shall I crouch?
The harvest’s ripe—and shall I pause to reap?
I slumber not; the thorn is in my couch;
Each day a trumpet soundeth in mine ear,
Its echo in my heart.”
—George Gordon Noel Byron (1788–1824)
“A bank is a confidence trick. If you put up the right signs, the wizards of finance themselves will come in and ask you to take their money.”
—Christina Stead (1902–1983)