Austerity

• The 2011 US debt ceiling crisis was one of a series of recurring debates over the increase in the overall size of the US government debt.

• The 25% rule is a heuristic that can refer to either public finance law or intellectual property law.

• Alan Greenspan is an American economist and former chairman of the Federal Reserve.

• Salvation is the injection of money into a business or organization that would otherwise face inevitable collapse.

• A balanced budget occurs when revenues equal or exceed total expenditures.

• Basel I, the first of the three Basel Accords, created a set of rules that banks must follow to mitigate risk.

• Ben Bernanke - former chairman of the Federal Reserve from 2006 to 2014.

• The compound rate is the interest rate charged on a loan, which is a combination of the previous rate and the new rate.

A budget surplus is when revenues exceed spending.#

• B2G, or business to government, is the provision of goods and services to government agencies at the federal, state, and local levels.

• Tier 1 total capital covers liquid banking assets such as cash, shares, etc.

• The crowding-out effect suggests that an increase in public sector spending leads to a decrease in private sector spending.

• Currency is a generally accepted form of payment, usually issued by a government and circulating within its jurisdiction.

• A spending deficit occurs when government spending exceeds its revenues.

• Demonetization is a radical intervention in the economy, which includes depriving the currency of the status of legal tender.

• Pigeons are believed to be more interested in stimulating job growth through low interest rates than in controlling inflation.

• Purpose is the process by which people or organizations allocate certain money for certain purposes.

• Economic efficiency is when every scarce resource in the economy is used and distributed between producers and consumers in such a way as to provide the greatest economic return and benefit to consumers.

• Economic integration or regional integration is an agreement between countries to reduce or eliminate trade barriers and harmonize fiscal policies.

• Economic stimulus refers to targeted fiscal and monetary policy aimed at obtaining an economic response from the private sector.

• Euribor is the interbank overnight rate, which consists of the average interest rates of a number of major European banks, which are used to lend to each other in euros.

• Medium-term euronote (EMTN) is a medium-term flexible debt security that is issued and traded outside the United States.

• Expansionary policies are aimed at stimulating the economy by increasing demand through monetary and fiscal stimulus.

• Expectancy theory predicts future short-term interest rates based on current long-term interest rates.

• The Fed’s balance sheet is a list of assets and liabilities of the Federal Reserve.