What is a Peace Dividend?

Introduction Peace dividend was a political slogan popularised by US President George H.W. Bush and UK Prime Minister Margaret Thatcher in the light of the 1988-1991 dissolution of the Soviet Union, that described the economic benefit of a decrease in defence spending. The term was frequently used at the end of the Cold War, when… Read More


What is the Guns versus Butter Model?

Introduction In macroeconomics, the guns versus butter model is an example of a simple production-possibility frontier. It demonstrates the relationship between a nation’s investment in defence and civilian goods. The “guns or butter” model is used generally as a simplification of national spending as a part of GDP. This may be seen as an analogy… Read More