Can we learn from previous instances of fiscal prioritisation? This column surveys the US Treasury’s response to three wars – the Revolutionary War, The War of 1812 and the Civil War. Contemporary advocates of engaging in fiscal discrimination might ponder the actions of previous US Presidents Madison and Grant, who honoured all existing federal obligations despite challenging fiscal conditions.

Civil wars are devastating to a country’s development perspectives. What’s more, they often spread across borders. But this column argues that only ethnic civil wars pose a significant threat to neighbouring countries’ stability. Countries with ethnic links to a neighbouring ethnic conflict see their chances of experiencing civil conflict increase by six percentage points.

Since World War II, civil wars have killed more people than interstate conflicts. Poverty and low income growth have long been suspected as important causal factors, and new evidence suggests that drops in income raise the likelihood of civil war. However, democratic institutions may significantly alleviate such dangers.

Civil war is a pivotal challenge for the development of the world’s poorest nations. Recent research finds that trade deters severe conflicts but fosters less severe ones. Here is the logic and evidence.

Between 1945 and 1999, there were around 127 civil conflicts and at least 1000 battles. The authors of CEPR DP6568 examine whether civil wars are partly caused by low economic growth, and whether the effects are significantly weaker in democracies. The results point to an interaction between economic and democratic institutional causes of civil war.