War and economics: Spanish civil war finances revisited

This paper reviews the financing of the Spanish civil war. We present new evidence showing that the combatants, the Republican government, and the Franco administration followed similar financial strategies. We argue, contrary to established wisdom, that both sides consumed similar shares of domestic and foreign resources. Using new price indexes, we offer budgetary figures in nominal and real terms for both sides. The Spanish civil war suggests that the outcome of wars, civil or otherwise, is independent of the point of departure. The economic and financial position of the combatants influences the development of wars. But the evolution of the economy is affected by the changing military fortunes of each of the sides. Copyright , Oxford University Press.