Recession of 2009/Related Articles
From Citizendium, the Citizens' Compendium
- See also changes related to Recession of 2009, or pages that link to Recession of 2009 or to this page or whose text .
See the related articles subpage to the article on economics for an index to topics referred to in the economics articles.
- Economics : The analysis of the production, distribution, and consumption of goods and services.
- Macroeconomics : The study of the behaviour of the principal economic aggregates, treating the national economy as an open system.
- Financial economics : the economics of investment choices made by individuals and corporations, and their consequences for the economy, .
- Financial system : The interactive system of organisations that serve as intermediaries between lenders and borrowers.
- Banking : the system of financial intermediation that provides the principle source of credit to individuals and companies.
- Fiscal policy : Policy concerning public expenditure, taxation and borrowing and the provision of public goods and services, and their effects upon social conduct, the distribution of wealth and the level of economic activity.
- Monetary policy : The economic policy instrument that is regularly used to stabilise the economy, and that has sometimes been used as a temporary expedient to relieve severe credit shortages.
- Crash of 2008 : the international banking crisis that followed the subprime mortgage crisis of 2007.
- National debt : The external obligations of the government and public sector agencies (otherwise known as national debt or government debt).
(for terms not defined below, see the economics glossary)
- Automatic stabilisers : the tendency in times of falling economic activity for the government spending to rise, and for tax receipts to fall - and the reverse tendency in times of rising economic activity
- "Bad bank" : A subsidiary, or separate corporation, created to hold and manage non-performing assets transferred to it by a rescued bank.
- Banking panic : A widespread fear of insolvency because of uncertainty concerning the true value of banking assets.
- Basis point : (bp) one hundredth of a percentage point .
- Bubble (economics) : A surge in prices that raises expectations of further increases, so generating further increases: a process that continues until confidence falters, the bubble "bursts" and prices rapidly revert to an objectively-based level.
- CDS - See Credit default swap.
- CDS spread : the annual percentage charge for a credit default swap
- Credit default swap : An insurance agreement that guarantees protection against a bond default in return for a fee.
- Credit easing : A method of making credit more available to individuals and businesses by changing the composition of the assets of the central bank towards less liquid and riskier private sector assets. Unlike quantitative easing, it may be done without expanding the money supply.
- Crowding out : A fall in private sector investment resulting from an increase in government borrowing.
- Debt trap : the situation in which the national debt continues to grow faster than national income so that more and more of the government’s budget has to be devoted to interest payments.
- Deleveraging : A reduction of the proportion of debt in a company's capital structure - also used to refer to a general reduction in household debt.
- : relating to taxation and government expenditure.
- Fiscal gap : the size of the primary budget surplus (expressed as a percent of GDP) that is required to achieve fiscal sustainability by immediate compliance with the requirement that the national debt be maintained at or below its existing percentage of GDP.
- Fiscal stimulus : a reduction in taxation for the purpose of raising economic output, or an increase in government spending for that purpose.
- LIBOR : (London Interbank Offer Rate) the rate of interest at which a group of banks (16 banks from seven countries, including the United States, Switzerland and Germany) are willing to lend to each other for periods ranging from a day to a year .
- LIBOR-OIS spread : The difference between the LIBOR rate and the Overnight index swap rate that is used as an measure of the state of confidence in the money market and an indicator of banks' willigness to lend, and is normally within the range 0.1% to 0.3%.
- Mark to market : A version of the fair value accounting convention that values a security at its current market price.
- Monetary base : currency in circulation plus bank vault cash plus deposits held by banks at the central bank (termed "high-powered money" in the US, and referred to as M0 in the UK).
- Money market : A market for short-term debt instruments (generally of maturity after less than one year) such as certificates of deposit, commercial paper, and Treasury bills.
- Money supply : the economy's stock of those assets that can be quickly exchanged for goods and services.
- Output gap : the percentage difference between the current value of the output of an economy, and that economy's normal output trend.
- Quantitative easing : An increase in the central bank's monetary liabilities as a result of its purchases of corporate or government securities.
- Ricardian equivalence : the argument that government spending will not increase demand because it will prompt taxpayers to save an equivalent amount in anticipation of a resulting tax increase.
- Sovereign default : The failure of a government to comply with its interest payment or debt repayment obligations.
- Sovereign spread : the difference between the yield on a country's bond issue and the yield on a comparable bond issued by a benchmark country such as the United States or Germany.
- Stress test (banking) : a test of the adequacy a bank's capital structure by estimating the consequences for it of an imaginary recession.