Analysis of Global Capital Markets in Distress
30 Pages Posted: 13 May 2011 Last revised: 21 Jul 2020
Date Written: May 12, 2010
Abstract
After the invasion of Iraq it appears that the pre-invasion assumptions of many observers and market participants turned out to be contradicted by reality. In this paper we investigate the U.S. government policy related to military spending on the invasion of Iraq. By analyzing the economic conditions of the U.S. financial markets before and after the war and terror, this paper attempts to examine the expediency of the military intervention and its unintended consequences with respect to energy prices and the fortunes of firms sensitive to them, as well as with respect to the ramifications of continued spending on Iraq in a period of high debt and budget deficits.
Keywords: invasion, military, financial markets
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