A Treatise on War Inflation

A Treatise on War Inflation: Present Policies and Future Tendencies in the United States by William Fellner is a seminal study of the economic challenges faced by the United States during the Second World War. Written in 1942 as part of a research program for the Bureau of Business and Economic Research at the University of California, the volume provides both a theoretical and empirical account of the causes of wartime inflation and the efficacy of policies designed to contain it. Fellner begins with a general analysis of the irrationalities of war finance, arguing that inflation arises less from abstract monetary expansion than from the creation of redundant incomes under conditions of scarcity. He explores the role of direct controls, progressive taxation, and nonexpansionary borrowing as tools to minimize inflationary pressures while also emphasizing the long-term implications for postwar economic stability.

The heart of the book examines U.S. fiscal and monetary practices from the pre–Pearl Harbor defense buildup through the early years of war mobilization. Fellner analyzes how induced consumption and investment stimulated civilian production, weighs the real burden of war in terms of consumption levels and distributional changes, and assesses both expansionary and noninflationary financing methods—from excise taxes to compulsory saving. His concluding chapters evaluate contemporary policies of “controlled inflation” while warning of their weaknesses and future risks. With its blend of economic theory, policy critique, and quantitative comparisons, the treatise remains an invaluable resource for scholars and policymakers interested in wartime economic management, the dynamics of inflation, and the enduring tension between fiscal discipline and political feasibility during national crises.

This title is part of UC Press's Voices Revived program, which commemorates University of California Press’s mission to seek out and cultivate the brightest minds and give them voice, reach, and impact. Drawing on a backlist dating to 1893, Voices Revived makes high-quality, peer-reviewed scholarship accessible once again using print-on-demand technology. This title was originally published in 1942.