A sketch of the economic consequences of the Gulf War

Hughes Hallett, Andrew and Ma, Yue (1991) A sketch of the economic consequences of the Gulf War. Quarterly Economic Commentary, 16 (3). pp. 58-69. ISSN 0306-7866

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    The British and American governments have evidently thought a lot about how to pay for the Gulf War, and their effort to obtain financial contributions from non-combatants in the OECD, and from Gulf Co-operation Council countries, have been fairly successful. In recent days they have also thought - in strictly political terms - about how to win the peace, after winning the war. But what they have not done, at least at an official level, is to consider the economic implications of the Gulf War. The ability to win the peace, and the willingness of other countries to support new arrangements designed to produce more stability in the region, must surely depend in part on the economic situation created by the war. This note projects the likely consequences of the war for the OECD countries, together with some of the indicators for the Gulf countries and the developing economies (LDCs).