Once national reserves sunk, governments had to raise taxes or sell bonds to continue fighting. But in WWI, as the initially localized conflict spread, fiscal discipline failed. As Ammous explains, within the first month “all major belligerents had suspended gold convertibility, effectively going off the gold standard and putting their population on a fiat standard.”
Source: https://www.coindesk.com/layer2/2022/03/12/the-first-crypto-war-may-lead-to-lasting-peace/?utm_medium=referral&utm_source=rss&utm_campaign=headlines