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by ramchip
5626 days ago
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In war time, the economy appears to stall, since the growth is concentrated in war-related products which do not influence indicators like the consumer price index. After the war ends, the industry goes back to normal and the CPI `catches up', making it look like the war boosted economic growth. That's how we explained it when I studied economics, at least IIRC. Edit: just noticed the website name. "The Christian Science Monitor". I feel slightly cheated. |
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(For the avoidance of doubt: No, I am not a Christian Scientist.)