abstract: The latest shift in the global balance of power (i.e., Russia invading Ukraine) has reinforced the role of NATO and breathed new life into the discussion on defence expenditure, particularly in respect to NATO’s two percent GDP guideline. This paper is interested in the defence expenditure of one of the smallest NATO nations, Luxembourg. The author investigates Luxembourg’s post-Cold War military spending via two different methods (graphical analysis and econometric modelling) and in relation 
journal: Intellectual Economics