or
or
War and conflicts in their various forms and manifestations remain pervasive around the world. As history has repeatedly shown, war and conflicts impose immeasurable human suffering and large economic and social and greater uncertainty associated with conflicts can impede investment and economic growth not only during the war but also afterward, making it difficult to escape. In addition, conflicts tend to complicate public finances, lowering revenue by destroying a part of the tax base while raising military expenditures. Fiscal deficits and public debt rise as a result, and resources shift away from social and developmental spending which further accentuates the consequences. At the regional level, war and conflicts pose an additional challenge because of their potential spillover effects, War can spread to the neighboring countries with a direct spillover effect. They can also have indirect spillover effects by depressing economic activity due to increased uncertainty in production or trade disruption) or by creating social strains due to a large influx of refugees in nearby countries.
Due to the huge financial burden that the maintenance of the military operations would have on the economy, techniques were thought up to help solve the burden. One such technique was the process of debasing the coinage. This was used in many countries that used coins from precious metals and they would debase the coins. This however didn't last very long as inflation started to increase. Various governments in charge attempted to curb the high cost of inflation through new reforms but some of their attempts just got steadily worse with the increasing bureaucracy that the government had to maintain as well as the huge amounts spent on welfare payments to the growing population worse.
Loot and plunder - or at least the prospect of such - may play a role in war economies। This involves the taking of goods by force as part of a military or political victory and was used as a significant source of a revenue for the victorious state. During the first World War when the Germans occupied the Belgians, the Belgian factories were forced to produce goods for the German effort or dismantled their machinery and took it back to Germany – along with thousands and thousands of Belgian slave factory workers.
