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Military power and conflict have fuelled economic growth throughout history. Money matters to the military; it is needed to finance war and the desire to acquire it is often the motive for fighting. This book examines the interaction of economics and conflict, explaining the economic concepts used, and illustrating them with a range of military examples, both contemporary and historical. Among the many links explored lies the undeniable fact that fighting and finance are often both driven by the same basic human motives, fear and greed. 'Military Economics' draws on technical literature to provide an accessible introduction to security, military expenditures, the arms industry, military operations and the economic consequences of defence spending. It raises current debates about the optimal size of the defence budget and examines how it is used to acquire forces, troops and weapons. By exploring the interaction between power and money, Ron Smith provides an insightful contribution to military planning, essential to the modern world.