An intertemperal analysis of the US actions in the Middle East
The intertemperal model can be used to explain the War in Iraq. The current use of American soldiers, equipment, and money to “liberate Iraq” can be viewed as the current goods being traded to the new republic of Iraq. As the intertemperal model holds, current goods or services are always exchanged for future goods or services. The intertemporal model also holds that relative prices are equal and that there are no barriers to trade, and no transportation costs associated with trade. Although in our real-life example there are costs associated with trade, they can be eliminated as they are incorporated in the costs of the war effort headed up by the United States.