Money, Banking and Global Finance

After 1990 the New Economy was born and the peace dividend was enormous. Facing no significant external dangers, military or economic, it became safe to shift resources to the private sector. From 1990 to 2000, defense spending fell from 5.2% of gross domestic product to less than 3%, the lowest level in the postwar period. And overall, the public sector's role in the economy dwindled. Total government spending on workers and purchases of goods and services also plunged from 20.4% of GDP in 1990 to 17.6% in 2000, a level not seen since 1948. …