Tony Blair, the new Churchill?

[tw]

Originally posted by jaguar
There are many signs of this already, usually a war stimulates the Economy, this time it has depressed it.

The Economist recently asked just this question. Bottom line is that there is no correlations between economic recession and war. Sometimes economic boom happens during or after war. Somtimes economic recession.

What is apparent from history is that freer monetary policy does not cure a recession. Freer monetary policy is believed by many to lessen a recession. Tighter monetary policy has been blamed for increasing the severity of recession. Excessively loose monetary policy has been known to create stagfaltion. Still some even dispute these conclusions. But recessions have little relationships to war or other catastrophic events such as the Kobe earthquake.