Deficit Financing

Deficit spending is the amount by which spending exceeds revenue over a particular period of time, also called simply deficit, or budget deficit; the opposite of budget surplus. The term may be applied to the budget of a government, private company, or individual. Government deficit spending is a central point of controversy in economics, as discussed below.

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Publications

World Bank Group · 27 November 2024 English

This report proposes designing such a strategy in light of macroeconomic risks. It analyzesNorth Macedonia's major macroeconomic and fiscal weaknesses, risks, and debt sustainability.It discusses tax policy and compliance challenges. …

private sector competitiveness, and changes to deficit financing sources. Additionally, the strategy emphasizes subsidies); • Changes to the sources of deficit financing (through greater diversification, realization


NBER: National Bureau of Economic Research · 21 November 2024 English

We present new long-run samples of r-g series over centuries for key economies in the international financial system. Across a wide variety of econometric approaches, and including duration-matched constructions, we …

overstretch" and years of (military- driven) deficit financing – with the period between 1729 and the first


World Bank Group · 15 November 2024 English

reforms, and the phased elimination of monetary deficit financing and financial repression. In June 2018, a


World Bank Group · 12 November 2024 English

in 2019. Financial repression, monetary deficit financing, and directed lending to SOEs contributed


CESifo Network · 4 November 2024 English

Climate Change Impacts on Public Finances Around the World

able to meet these revenue needs through deficit financing, credit-constrained and lower-income regions


IMF: International Monetary Fund · 4 November 2024 English

The Board approved Ethiopia’s request for a four-year arrangement under the Extended Credit Facility (ECF arrangement) in July 2024 to support the authorities’ program aimed at addressing macroeconomic imbalances, restoring …

from 10.8 to 9.8 percent of GDP to reduce deficit financing needs, resulting in substantial fiscal tightening


NBER: National Bureau of Economic Research · 1 November 2024 English

In HANK models, fiscal deficits drive aggregate demand and thus inflation because households are non-Ricardian; in the Fiscal Theory of the Price Level (FTPL), they instead do so via equilibrium …

of debt erosion and tax-base expansion in deficit financing. Replacing (2) with generalized Phillips curves


EU: European Union · 31 October 2024 English

Credible ECB monetary policy requires that the revised EU economic governance framework be tightly enforced from its start. Net primary expenditures as key control variable allow predictable monetary policy focused …

related to a so-called “golden rule” in which deficit-financing is confined to the financing of public investments


EPRS: European Parliamentary Research Service · 31 October 2024 English

Credible ECB monetary policy requires that the revised EU economic governance framework be tightly enforced from its start. Net primary expenditures as key control variable allow predictable monetary policy focused …

related to a so-called “golden rule” in which deficit-financing is confined to the financing of public investments


EPRS: European Parliamentary Research Service · 30 October 2024 English

This paper provides an overview of the International Monetary Fund (IMF)’s lending to Ukraine, particularly focusing on the IMF response to the Russia’s invasion of Ukraine since February 2022, given …

revenue and spending categories and sources of deficit financing for 2025-2026, and a fiscal risks statement


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