war financing

War financing refers to how governments gather funds to cover the costs of military operations and defense infrastructure. This is typically done through a combination of sources: raising taxes, borrowing money via bonds or debt instruments from citizens and institutions, and reallocating budgets from other areas. Sometimes, central banks may also create money to fund defense needs, which can lead to inflation. Effective war financing involves balancing immediate needs with long-term economic stability, ensuring sufficient resources are available while managing the country's overall financial health.