In the wake of the war in Ukraine, military budgets around the world are about to get bigger. This is most notable in Europe, where the threat of Russian aggression looms largest. Germany, Italy and Norway, among others, have already decided to spend more on defence. America and China, the world's two biggest military spenders, are also ramping up their allocations. Pressure on smaller countries to do likewise seems inevitable.

What are the economic consequences of this push?