Open market operations (OMO) refer to the buying and selling of government securities in the open market by the Federal Reserve. The Federal Reserve uses OMOs to influence the supply of reserve balances in the banking system and thereby affect the federal funds rate and other short-term interest rates. OMOs are conducted by the Federal … Read more
S. National Debt Ceiling? What is the U.S. National Debt Ceiling? Who does the U. S. owe the national debt to? The U.S. national debt is the debt owed by the federal government of the United States. The national debt is the debt incurred by the Federal Government of the United States through the issue … Read more
The J-curve effect is the economic principle that describes the relationship between government spending and economic growth. The theory posits that there is a point at which government spending becomes so large that it begins to crowd out private investment, leading to slower economic growth. The name comes from the shape of the resulting graph, … Read more
PPPs: Definition, How They Work, and Examples How many types of PPP are there? There are four types of PPP: 1. Public-Private Partnerships for Infrastructure 2. Public-Private Partnerships for Social Services 3. Public-Private Partnerships for Economic Development 4. Public-Private Partnerships for National Security How do you build effective public/private partnerships? There is no one-size-fits-all answer … Read more
. Infrastructure: What it is, What it Means, and Examples. What is another word for infrastructure? There is no one definitive answer to this question, as “infrastructure” can mean different things in different contexts. In general, however, “infrastructure” refers to the basic physical and organizational structures and facilities (e.g. roads, bridges, tunnels, water and sewer … Read more
A net borrower is a government or entity that spends more money than it takes in over a period of time. The term is typically used in reference to sovereign nations, but can also apply to companies, households, or individuals. A government that is a net borrower must finance its deficits by issuing debt, which … Read more
Pork barrel politics is the use of government spending to benefit a particular constituency, usually in the form of earmarked spending for pet projects. The term “pork barrel” comes from the old practice of distributing barrels of salt pork to constituents as a way of winning their support. In modern politics, pork barrel spending typically … Read more
The Fifth Amendment to the United States Constitution states that “private property [shall not] be taken for public use, without just compensation.” This portion of the Constitution is known as the Takings Clause. The Takings Clause requires the government to compensate an owner of real property if the government seizes the property or if the … Read more
Earmarking is the process by which funds are set aside for a specific purpose. Earmarked funds cannot be used for any other purpose without the express permission of the earmarking authority. In the United States, earmarks are commonly used to direct federal funds to specific projects within a state or congressional district. What is the … Read more
Overlapping debt is defined as the amount of debt that is shared by two or more levels of government. This can occur when one level of government borrows money from another level of government, or when two or more levels of government borrow money from the same source. Overlapping debt can also occur when two … Read more
