The defence industry: same as it ever was?
As COVID-19 spread in 2020 and national lockdowns bludgeoned the global economy, many feared the worst for state finances. Jittery economists expected treasuries to react in a manner similar to the financial meltdown of 2008-2009, by slashing government budgets and implementing a raft of austerity measures.
Quite the opposite transpired. As zealous central banks hoovered up bonds and flooded markets with liquidity, governments loosened their spending taps. While cuts fell hard on defence budgets from 2009 to 2014, they gingerly benefited from government windfalls this time around.
Such is the largesse that even traditional laggards like Germany have committed to
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