Foundations of A Theory of Economic Warfare and Arms Control

Abstract
War is carried out even in “peacetime” by exerting economic pressure in the form of forced deterring expenditure as well as by military threat. Peace can achieved only by considering both economic and military arms control. In this paper, disarmament and its verification by fiscal control are studied as a means of negotiating a reduction and elimination of both dimensions of war. This is first done under simplifying assumptions, but then is followed by an analysis of the complete theory of economic and military interactions.

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