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War and Economics: Spanish Civil War Finances Revisited

  • Martin-Acena, Pablo
  • Martinez Ruiz, Elena
  • Pons Brias, Maria A.
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    This paper reviews how the Spanish civil war was financed. We present new evidence to show that the two combatant parties, the Republican government and the Franco administration followed similar financial strategies. In both cases money creation, rather than new taxes or the issue of debt, was the main mechanism used to cover the expenses of the war. We argue, contrary to the established knowledge, that both sides consumed a similar amount of domestic and foreign resources. We also argue that the Spanish Republic did not lose the war because of a lack of means. International factors, such as the Non-Intervention agreement promoted by France and Great Britain, and the military setbacks of the Republican army during the first year of the war, were decisive for Franco’s victory in 1939.

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    File URL: http://mpra.ub.uni-muenchen.de/22833/1/MPRA_paper_22833.pdf
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    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 22833.

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    Date of creation: May 2010
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    Handle: RePEc:pra:mprapa:22833
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