Golden Rule

• 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.

• 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.

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.

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

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

• 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.

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

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

• The government creates a budget deficit by spending more money than it receives from taxes and other revenues, with the exception of debt.

• Government purchases include any spending by federal, state, and local agencies, excluding debt and transfer payments such as Social Security.

• Gross national income (GNI) is an alternative to gross domestic product (GDP) as a measure of wealth. It calculates income, not output.

• A member of the World Bank Group, the International Finance Corporation (IFC) provides financing for investment by private enterprises in developing countries.

• The J-curve depicts a trend that begins with a sharp decline followed by a sharp rise.

• Property owners are given fair compensation for the lawful seizure of personal property or land.

• Odious debt is a term applied to the debt of a predecessor government that the successor government wishes to relinquish on ostensibly moral grounds.

• Open market operations are one of three tools used by the Fed to influence the availability of money and credit.

• Overlapping debt is when the debt issued to finance the activities of the government falls on several political jurisdictions, while the joint debt is distributed among them.

• Funding for a local project can be included in a larger budget as a separate item. It’s the pork barrel policy.

• Public-private partnership allows large-scale public projects such as roads, bridges or hospitals to be carried out with private funding.

• Pumping refers to steps taken to stimulate spending in an economy during or after a recession.