Macroeconomic Effects of War Finance in the United States

Lee E. Ohanian is Professor of Economics, University of California, Los Angeles Senior Fellow, Hoover Institution, Stanford University.

• 1. Introduction 2. The Macroeconomic Effects of Wartime Fiscal Policy in the United States 2.1. Introduction 2.2. Historical War Episodes 2.3. The Model Economy 2.4. Model Calibration and Welfare Cost Calculation 2.5. Economic Analysis of Government Policies 2.6. Summary and Conclusions 3. The Macroeconomic Effects of World War II Monetary Policy: Price Controls, Rationing, and Inflation 3.1. Introduction 3.2. Monetary Policies During US Wars and Design of Counterfactual Policy 3.3. World War II Rationing and Price Controls 3.4. The Model Economy 3.5. Calibrating the Model with Price Controls 3.6. Economic Analysis of Monetary Policies 3.7. Summary and Conclusions