(4 of 4)
Economists generally agree that the Reagan defense buildup should not necessarily cause more inflation. Says Joseph Pechman, director of economic studies at the Brookings Institution: "Defense spending does not automatically add to inflationary pressures. Buying a weapons system is not economically different from buying a dam or paying somebody to teach on an Indian reservation." But after the Viet Nam experience, skeptics will be watching closely for any signs of added inflation from the new military buildup. —By Alexander Taylor.
Reported by Barry Hillenbrand/Boston and Joseph J. Kane/Los Angeles