The Economics of Increased Defence Spending

Increased geopolitical tensions and the gradual erosion of traditional security guarantees have placed defence expenditure back at the centre of UK fiscal policy. Whilst the strategic imperatives for the UK and its European allies to take on more of the burden for the cost of their security are widely known, the profound macroeconomic and fiscal consequences require closer scrutiny. This webinar, timed to coincide with the conclusion of the NATO summit in Ankara, explores the multi-faceted economic implications of an expanded UK defence budget. Our panel of experts assess how heightened defence commitments could affect the UK’s broader economic framework, evaluating the effects on inflation and aggregate demand alongside the long-term potential for economic growth. 00:00:00 - 00:01:33 Introduction from Ben Zaranko 00:01:34 - 00:06:33 Opening comments from Ethan Ilzetzki 00:06:34 - 00:11:15 Opening comments from Paolo Surico 00:11:15 - 00:15:38 Opening comments from Katharine Neiss 00:15:39 - 01:01:30 Questions to, and discussion with, the panel