Reply To: Paying for War via Inflation


Yes, the statistics are calculated for both the first and the second world wars. You will find them on the relevant lectures in Parts 1 (1st world war) and Part 2 (2nd world war).

The use of monetary inflation actually diminishes the government’s war effort by reducing the productive capability of the economy, more than either debt financing or taxation. You will find some comments on these points on the lectures mentioned above.