Crowding out

crowding out investment & finance definition
The effect that occurs when governments borrow heavily to fund budget deficits.

Crowding out
Crowding out is also a term in economics. It happens when the government is borrowing heavily while businesses and individuals also would like to borrow.

Crowding out
Heavy federal borrowing that drives interest rates up and prevents businesses and consumers from borrowing when they would like to.

In that case, crowding out is minimal. Further, private investment can be "crowded in": fiscal stimulus raises the market for business output, raising cash flow and profitability, spurring business optimism.

Crowding out
Crown jewel
Cum dividend
Cum rights
Cumulative abnormal return (CAR)
Cumulative Auction Market Preferred Stocks (CAMPS)
Cumulative dividend feature
Cumulative preferred stock
Cumulative probability distribution
Cumulative total return ...

The fixed supply side also implies that government and private-sector spending are always in conflict, so that government deficit spending leads to crowding out of the private sector and has no effect on the level of employment.

crowding out A situation in which the government is borrowing heavily while businesses and... crown corporation A corporation that was established by a country's government.

See also: Crowd, Market, Interest, Interest Rate, Demand