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Home Dictionary E Economic Stimulus Economic stimulus refers to targeted fiscal and monetary policy aimed at obtaining an economic response from the private sector. Economic stimulus is a conservative approach to expansionary fiscal and monetary policy based on encouraging private sector spending to compensate for losses in aggregate demand. Fiscal stimulus measures - deficit spending and tax cuts; monetary stimulus measures are produced by central banks and may include lowering interest rates. Economists are still arguing about the usefulness of coordinated economic stimulus, with some arguing that in the long run they can do more harm than good in the short term. 2011 U.S. Debt Ceiling Crisis
September 25, 2022 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. 25% Rule
September 25, 2022 The 25% rule is a heuristic that can refer to either public finance law or intellectual property law. 501(c)
September 25, 2022 Section 501(c) of the Internal Revenue Code defines certain types of organizations as tax-exempt - they do not pay federal income tax. Ability-to-Pay Taxation
September 25, 2022 The principle of ability to pay states that those who are more able to pay taxes, measured by income and wealth, should pay more. Alan Greenspan
September 25, 2022 Alan Greenspan is an American economist and former chairman of the Federal Reserve. Austerity
September 25, 2022 Austerity refers to a strict economic policy that the government introduces to control the growing public debt, driven by increased thrift. Bailout
September 25, 2022 Salvation is the injection of money into a business or organization that would otherwise face inevitable collapse. Balanced Budget
September 25, 2022 A balanced budget occurs when revenues equal or exceed total expenditures. Basel I
September 25, 2022 Basel I, the first of the three Basel Accords, created a set of rules that banks must follow to mitigate risk. Ben Bernanke
September 25, 2022 Ben Bernanke - former chairman of the Federal Reserve from 2006 to 2014. Blended Rate
September 25, 2022 The compound rate is the interest rate charged on a loan, which is a combination of the previous rate and the new rate. Budget Surplus
September 25, 2022 A budget surplus is when revenues exceed spending.# Business to Government (B2G)
September 25, 2022 B2G, or business to government, is the provision of goods and services to government agencies at the federal, state, and local levels. Common Equity Tier 1 (CET1)
September 25, 2022 Tier 1 total capital covers liquid banking assets such as cash, shares, etc. Crowding Out Effect
September 25, 2022 The crowding-out effect suggests that an increase in public sector spending leads to a decrease in private sector spending. Currency
September 25, 2022 Currency is a generally accepted form of payment, usually issued by a government and circulating within its jurisdiction. Deficit Spending
September 25, 2022 A spending deficit occurs when government spending exceeds its revenues. Deflation
September 25, 2022 Deflation is a general decrease in the level of prices for goods and services. Demonetization
September 25, 2022 Demonetization is a radical intervention in the economy, which includes depriving the currency of the status of legal tender. Double Taxation
September 25, 2022 Double taxation means that income tax is paid twice from the same source of income. Dove
September 25, 2022 Pigeons are believed to be more interested in stimulating job growth through low interest rates than in controlling inflation. Earmarking
September 25, 2022 Purpose is the process by which people or organizations allocate certain money for certain purposes. Economic Efficiency
September 25, 2022 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
September 25, 2022 Economic integration or regional integration is an agreement between countries to reduce or eliminate trade barriers and harmonize fiscal policies. Economic Recovery Tax Act of 1981 (ERTA)
September 25, 2022 The Recovery Tax Act of 1981, signed into law by Ronald Reagan during his first year in office, was the largest tax cut in US history.