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. Bonds & Fixed Income

    War's Influence On Wall Street

  2. Retirement

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

  3. Sanctions provide a relatively non-violent alternative to outright war.
    Economics

    Sanctions Between Countries Pack a Bigger ...

  4. Bonds & Fixed Income

    Dragons, Samurai Warriors And Sushi ...

Hot Definitions
  1. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  2. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  3. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  4. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  5. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  6. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
Trading Center