War Bond
War bonds are debt securities issued by a government for the purpose of financing military operations during times of war. War bonds generate capital for the government and make civilians feel involved in their national militaries. This system is also useful as a means of controlling inflation in such an overstimulated economy by removing money from circulation until hopefully after the war is concluded. At that point, the funds could be liquidated and serve as a stimulus to encourage consumer spending for the economy transitioning to peacetime activity. Exhortations to buy war bonds are often accompanied with appeals to patriotism and conscience. Government-issued war bonds tend to have a yield which is below market value and are often made available in a wide range of denominations to make them affordable to all citizens.
Read more about War Bond: Before World War I
Famous quotes containing the words war and/or bond:
“All war represents a failure of diplomacy.”
—Tony Benn (b. 1925)
“They lived under a just and moderate government, and they admitted that one bond of their fidelity was that their rulers were the better men.”
—Titus Livius (Livy)