释义 |
deficit financing
deficit financing n (Banking & Finance) government spending in excess of revenues so that a budget deficit is incurred, which is financed by borrowing: recommended by Keynesian economists in order to increase economic activity and reduce unemployment. Also called: compensatory finance or pump priming Translationsdeficit financing
deficit financing The sale of debt securities in order to finance expenditures that are in excess of income. Generally, deficit financing is applied to government finance because income, represented by tax revenues and fees, is often unavailable to pay expenses. As with monetizing the debt, deficit financing puts upward pressure on interest rates because government debt securities compete with private securities for limited capital.deficit financing see BUDGET DEFICIT, PUBLIC SECTOR BORROWING REQUIREMENT.ThesaurusSeedeficit spending |