The Russian invasion of Ukraine has led to the biggest ever economic sanction response since World War II. Although economic warfare has been fought before, we are entering a new, unprecedented era of the weaponization of money, writes Alan Bollard. 

When Russia began its invasion of Ukraine it was soon clear that there would be widespread condemnation by other countries, but little military assistance. What has eventuated is the biggest declaration of economic warfare since World War II.

Every war has an economic element; financing military engagement has always been a costly exercise, made more difficult by disrupted funding markets. Wars have always been paid for by looting, by taxing, by borrowing and/or by inflation. The mid-19^th century Crimean War nearly bankrupted the Russian Treasury, and forced the British into reforms for financing the military. Ultimately, the two world wars left a legacy of big governments and huge debts; most public debt built up in Europe has originated from warfare.