Salutary Effects on the Economy

As has been true during more than conventional wars, the war on terrorism since 9/11 has tended to disrupt the overall health of the providence because while it is true that wars boost certain kinds of production, they tend to do so at the cost of production in other arenas. This means that notes is withdrawn from those other sectors - unless the government chooses to increase the money publish and so risk raising the rate of inflation. This is in position the policy that the catereral Reserve has been following since 9/11: By keeping interest rates at diachronic lows, th

e Fed has in effect increased the money supply. This has effectively helped to compensate for the drain on sectors of the economy that are not war or credential related - a counterbalancing effect that has in fact helped to clear the economy at least in recent months.

However, the king of the Federal Reserve (or of any government agency) to mitigate the frugal drawn of a wartime economy on other sectors of the economy can only be maintained so want as inflationary pressures are dampened (http://www.icfc.ilstu.edu/icfcpapers02/swann.pdf). It seems likely that we have induce to the point in this country (according to the latest pronouncements by the Fed that it is inching towards raising interest rates during the summer) when interest rates go out rise and non-military and non-government produ
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