Deficit Financing
Definition: Government borrowing to make up for revenue shortfalls.
Deficit financing: The borrowing of money because expenditures will exceed receipts.
Deficit spending: government spending financed by borrowing rather than taxation.
Deficit Financing
The borrowing of money by government agencies to procure revenue shortages. Deficit financing may stimulate the economy for a while, but usually ends up being an economic hindrance by pushing up interest rates.
Deficit financing
1. The method used by a government to finance its budget deficit, that is, to cover the difference between its tax receipts and its expenditures. The main choices are to issue bonds or to print money.
2.
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deficit financing
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Understanding and Forecasting the Credit Cycle-Why the Mainstream Paradigm in Economics and Finance Collapsed
by Richard A. Werner ...
Borrowing to compensate for revenue shortfall is called deficit financing. Though deficit financing may initially stimulate the economy, it is a short term solution. For in perpetuity, deficit financing can substantially inflate interest rates.
When government spending overwhelms government revenue resulting in government borrowing. See: Deficit financing.
Defined asset fund ...
of a strong and opened for foreign investments economy is a strong currency. Weak dollar risk implies that the interest of foreign investors to the U.S. assets may diminish, causing the U.S. to lose important means of trade deficit financing.
Public borrowing is thought to have an inflationary effect on the economy and thus is often used during recessions to stimulate consumption, investment, and employment. See also deficit financing; John Maynard Keynes.
 See also: Budget deficit, Expense, Debt service, Government expenditures, Deflation
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