Title: Impact of the Korean War on the economy of the United States - Wikipedia
Headings: Impact of the Korean War on the economy of the United States
Impact of the Korean War on the economy of the United States
Contents
Financing
Monetary policy
Price freeze
Military spending
Notes
References

Content: From the onset of the war to the start of the price freeze, prices increased at a rate of 11.1 percent annually. During the period from the price freeze to the end of price controls, prices rose at rate of 2.1 percent annually. Overall inflation increased by 5.3 percent. This inflation growth was much lower than that of World War II, during which wholesale prices increased about 70 percent. While money growth was very high and volatile during World War II, averaging 18 percent between 1940 and 1946, the average money growth rate during the Korean War was 4 percent. In response to this growth in inflation, the government implemented price and wage controls. Increases in taxes and new price and wage controls that constrained private sector consumption and investment affected overall material well-being. In the years after the war, consumption and investment continue to be impacted by war as they did not return to pre-war levels. Military spending
Military spending in the United States was high prior to the Korean War due to the Cold War with the Soviet Union. The Korean War cost the US$30 billion in 1953, which is equivalent to US$341 billion in 2011.