Three world wars: Fiscal–monetary consequences

Significance We detect common forces that impinged on US monetary and fiscal policies during two 20th century world wars and now during the War on COVID-19 and then compare government and market responses to these forces. The US government had to finance large wartime surges in its expenditures by taxing, borrowing, or printing money. We document and interpret consequences of the choices that the government made in these three world wars.