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What are the war effects on the U.S. economy and policy.

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The solution provides an in-depth insight into U.S. economy and policy.

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After some stupid comments about each other the leaders of Middle East start a war between among their countries. They start bombing each other's industrial zones for more than a month without any ceasefire destroying 90% of each other's capacity. Surprisingly enough Iraq is not part of this war, so the United States troops are not included in the conflict. However United States and European Union start feeling war effects in their respective economies. It's the January 2011, we already are in a recession, with high unemployment, although Ben Bernanke just decided to buy $600 billion T- ­ ? bills. The House has a majority of GOP, which does not support big government. You're an advisor to the White House. The President asks you to do a report about the war effects on U.S. (what exactly has happened, why everybody is complaining), and asks you what measures could be taken, including monetary and/or fiscal policies. In the end of the memo, the president has written in handwriting: "Please include advantages and disadvantages of ...

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