War Economy

AAA

DEFINITION of 'War Economy'

The organization of a country's production capacity and distribution during a time of conflict. A war economy must make substantial adjustments to its consumer production in order to accommodate defense production. Governments must choose how to allocate their resources in a war ecomony very carefully in order to achieve military victory while meeting vital domestic consumer needs.

INVESTOPEDIA EXPLAINS 'War Economy'

All of the major members of both the Axis and Allied powers had war economies during World War II. America's economic strength was a vital pillar that allowed the Allies to receive the money and equipment needed to defeat Axis.

RELATED TERMS
  1. War Damage Insurance Corporation

    A government financial protection arm created during World War ...
  2. War Exclusion Clause

    A clause in an insurance policy that specifically excludes coverage ...
  3. Price War

    When companies continuously lower prices to undercut the competition. ...
  4. Freedom Shares

    Original issue discount bonds issued by the U.S. Treasury from ...
  5. Economy

    The large set of inter-related economic production and consumption ...
  6. War Babies

    A name given to securities in companies that are defense contractors. ...
Related Articles
  1. War's Influence On Wall Street
    Bonds & Fixed Income

    War's Influence On Wall Street

  2. Are there special benefits for U.S. ...
    Retirement

    Are there special benefits for U.S. ...

  3. Sanctions Between Countries Pack a Bigger ...
    Economics

    Sanctions Between Countries Pack a Bigger ...

  4. Dragons, Samurai Warriors And Sushi ...
    Bonds & Fixed Income

    Dragons, Samurai Warriors And Sushi ...

comments powered by Disqus
Hot Definitions
  1. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  5. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  6. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
Trading Center