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The Joint Effect of Social Comparison and Social Distance on Evaluation of Intertemporal Choice Outcomes in Event-related Potential Studies
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Three world wars: Fiscal-monetary consequences.

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  • 1Department of Economics, Brandeis University, Waltham, MA 02453.

Proceedings of the National Academy of Sciences of the United States of America
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Summary
This summary is machine-generated.

This study examines US economic policy responses to major conflicts, including World Wars I, II, and the COVID-19 pandemic, under budget constraints. It reveals how fiscal and monetary policies adapted to wartime economic challenges.

Keywords:
COVID-19inflationunpleasant monetarist arithmetic

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Area of Science:

  • Economics
  • Public Finance
  • Monetary Policy

Background:

  • Governments face budget constraints during major national events.
  • Historical analysis of economic policy is crucial for understanding national responses.
  • Comparing responses across different conflicts provides valuable insights.

Observation:

  • The study analyzes US monetary and fiscal policy actions.
  • The comparison spans World War I, World War II, and the COVID-19 pandemic.
  • A consolidated government budget constraint guides the analysis.

Findings:

  • Monetary and fiscal responses varied significantly across the analyzed conflicts.
  • Budgetary limitations influenced the scale and type of economic interventions.
  • The War on COVID-19 presented unique challenges compared to previous wars.

Implications:

  • Understanding past responses can inform future economic strategies during crises.
  • Policy lessons learned can optimize resource allocation and economic stability.
  • This research contributes to the literature on crisis economics and government finance.