War finance, a branch of defense economics, covers a number of measures - including fiscal and monetary initiatives - to fund the expenditure of a war. Such measures, broadly classified in three categories, may include:
Thus these measures may include levy of specific taxation, increase and enlarging the scope of existing taxation, raising of compulsory and voluntary loans from the public, arranging loans from foreign sovereign states or financial institutions, and also the creation of money by the government or the central banking authority.
Throughout the history of human civilization, from ancient times until the modern era, conflicts and wars have always involved raising of resources and war finance has remained, in some form or the other, a major part of any defense economy.
Funds are often raised with war bonds.
Loot and plunder - or at least the prospect of such - may play a role in war economies.