

War, Debt, and the Price Level
Wars heighten economic actors’ perception of risk. The conditions created by wars may offer advantages to certain interest groups. For society as a whole, however, they strengthen the desire for economic security. Under such circumstances, savers can be expected to turn to government bonds, which they regard as safe assets that protect their economic interests. Bond prices and yields move in opposite directions. Therefore, purchases by savers raise bond prices but lower bond
Arda Tunca
3 days ago14 min read









