War with Iraq seems inevitable, with or without the support of the UN. The economic costs of such a war could be huge, both in direct American outlays for war and its aftermath, and in the indirect spillovers on the world economy. This war would take place against a background of weak economic conditions globally, and would exacerbate those weaknesses, perhaps throwing the world economy into recession. The economic outcome of war could well depend on the diplomatic context. If America acts alone, the likely costs of war to the world economy will be higher than if it has the backing of the UN.
War with Iraq seems inevitable, with or without the support of the UN. The economic costs of such a war could be huge, both in direct American outlays for war and its aftermath, and in the indirect spillovers on the world economy. This war would take place against a background of weak economic conditions globally, and would exacerbate those weaknesses, perhaps throwing the world economy into recession. The economic outcome of war could well depend on the diplomatic context. If America acts alone, the likely costs of war to the world economy will be higher than if it has the backing of the UN.