Public debt/Related Articles

Glossary

• Automatic stabilisers [r]: 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 ^[e]
• Debt trap [r]: 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. ^[e]
• Fiscal stimulus [r]: a reduction in taxation for the purpose of raising economic output, or an increase in government spending for that purpose. ^[e]
• Fiscal gap [r]: 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. ^[e]
• Monetisation of public debt [r]: Add brief definition or description
• Money supply [r]: the economy's stock of those assets that can be quickly exchanged for goods and services. ^[e]
• National debt [r]: The external obligations of the government and public sector agencies (otherwise known as national debt or government debt). ^[e]
• Primary budget deficit [r]: the budget deficit excluding payments of interest on the national debt. ^[e]
• Ricardian equivalence [r]: 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. ^[e]
• Sovereign default [r]: The failure of a government to comply with its interest payment or debt repayment obligations. ^[e]