The Macroeconomic Effects of War Finance in the United States: World War II and the Korean War.
Ohanian, Lee E;
Journal: American Economic Review,volume 87,issue 1 March,pages23-40
During World War II, government expenditures were financed primarily by issuing debt. During the Korean War, expenditures were financed almost exclusively by higher taxes, reflecting President Truman's preference for balanced budgets. This paper evaluates quantitatively... View more