There is no official definition of a "war economy" but there are many attributes that add up to one.

A war economy means that a country has mobilized its resources, manufacturing capabilities and workforce to support military preparation and production leading up to or during wartime.

The most obvious economic change is a shift in industrial production away from consumer goods to things like weapons, ammunition or other military equipment.

Besides traditional military hardware, modern weapons require investments in technology and digital services like software, data analytics, satellite systems and reliable internet, says Penny Naas, a public policy expert at the German Marshall Fund of the United States in Washington.

To manage all this, there is an increase in centralized government control of necessary industries and resource allocation. This control lets governments prioritize and redirect raw materials to war-related industries and goods. Other things like fuel or food may be rationed to give priority to the military.

"In a true war economy, all elements of society are reoriented toward defending the homeland," said Naas.

This reorientation is expensive and there is usually a big increase in government spending to pay for it all. This can lead to more borrowing, inflation, higher taxes and less welfare spending.

Armin Steinbach, a fellow at Bruegel, a Brussel-based think tank, and a professor at HEC Paris business school. argues that companies specializing in military goods, digital technologies, information and intelligence, pharmaceutical........

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