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deficit financing

 
Britannica Concise Encyclopedia: deficit financing
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In government, the practice of spending more money than is received as revenue, the difference being made up by borrowing or minting new funds. The term usually refers to a conscious attempt to stimulate the economy by lowering tax rates or increasing government expenditures. Critics of deficit financing regularly denounce it as an example of shortsighted government policy. Advocates argue that it can be used successfully in response to a recession or depression, proposing that the ideal of an annually balanced budget should give way to that of a budget balanced over the span of a business cycle. See also John Maynard Keynes; national debt.

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Financial & Investment Dictionary: Deficit Financing
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Home > Library > Business & Finance > Finance and Investment Dictionary

Borrowing by a government agency to make up for a revenue shortfall. Deficit financing stimulates the economy for a time but eventually can become a drag on the economy by pushing up interest rates. See also Crowding Out; Keynesian Economics.

Business Dictionary: Deficit Financing
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Home > Library > Business & Finance > Business Dictionary

Borrowing by a government agency to make up for a revenue shortfall. Deficit financing stimulates the economy for a time but eventually can become a drag on the economy by pushing up interest rates. See also Crowding Out; Keynesian Economics.

Economics Dictionary: deficit financing
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Home > Library > Business & Finance > Economics Dictionary

A government policy of financing large public expenditures by borrowing money rather than by raising taxes; also called deficit spending.

 
 

 

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Britannica Concise Encyclopedia. Britannica Concise Encyclopedia. © 2006 Encyclopædia Britannica, Inc. All rights reserved.  Read more
Financial & Investment Dictionary. Dictionary of Finance and Investment Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.  Read more
Business Dictionary. Dictionary of Business Terms. Copyright © 2000 by Barron's Educational Series, Inc. All rights reserved.  Read more
Economics Dictionary. The New Dictionary of Cultural Literacy, Third Edition Edited by E.D. Hirsch, Jr., Joseph F. Kett, and James Trefil. Copyright © 2002 by Houghton Mifflin Company. Published by Houghton Mifflin. All rights reserved.  Read more