deficit financing


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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
Translations

deficit financing

n (Fin) → Defizitfinanzierung f, → Finanzierung fdurch Staatsverschuldung
References in periodicals archive ?
Near-term risks to the outlook are tilted to the downside, reflecting the potential for fiscal deficit financing difficulties to force a sharp consolidation, together with increasing distortions associated with the FX shortage.
The IMF has said that it is ready to help Sri Lanka cap its central bank deficit financing.
Debt has become an important source of deficit financing that reduces the pace of drawdowns from government reserves.
The target ceiling for deficit financing in the EU is 3 percent.
However, the fiscal position remains under pressure, with deficit financing needs requiring domestic borrowing in the form of central bank credit and further use of government deposits.
He disclosed that the central bank support to the agricultural sector amounted to 3 billion pounds a matter that led to the increase of inflation and the exchange rate due to deficit financing to the agriculture sector.
According to the BCT, deficit financing during the first 5 months of 2016 was mainly ensured by intensive recourse to domestic financing.
The deficit financing will take into account the best financing options available, including borrowing from the local and international markets; the scheme will be designed so not to adversely affect domestic liquidity to ensure Private Sector growth.
In other words, deficit financing has resulted in "too many South Sudanese pounds chasing too few dollars.
S&P believes that in these two countries, debt or Sukuk issuance are more likely as a source of deficit financing than for other GCC members.
The government is now expected to issue debt as part of its deficit financing strategy," it said.
This new financing strategy should reduce the pressure on foreign reserves as the main deficit financing tool, Jadwa Investment said in its Quarterly Oil Market Update.