‘Guns vs. butter’: IMF flags tough trade-offs as governments ramp up defense spending

Cătălin Roșioru

A new era of higher defense spending has prompted the International Monetary Fund to warn of an emerging "guns versus butter" trade-off, with governments expected to face tough choices on debt and public spending. The so-called "guns versus butter" dilemma refers to the trade-off governments face when allocating resources between defense spending and social programs. In its latest World Economic Outlook , the IMF said approximately half of the world's countries have raised their military