The greatest contribution that economics can make to banishing war lies in creating conditions that help keep the peace, especially in the long run. The problem is to identify the set of conditions that will generate positive incentives for nations to keep the peace and work out a set of policies and institutions capable of creating those conditions. This article by Lloyd J. Dumas outlines a few of the most critical conditions and sketches some of the kinds of policies that might help to bring them about.
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Dumas, Lloyd J.. 2006. An economic approach to peacemaking and peacekeeping. The Economics of Peace and Security Journal 1/2: 7-12. http://www.epsjournal.org.uk/Vol1/No2/issue.php.