Definitions by Abu Yahya
austerity program
(ECONOMICS) when a government has to restructure spending by massively cutting social programs, development programs, and subsidies on basic necessities. Often accompanied by taxes increases, especially on lower incomes (since the poor cannot escape tax hikes).
Usually we use the term "austerity program" when the government in question has to backtrack on its ideological commitments. An example of this is France, after June 1982. The Socialist government of Mitterrand had just implemented a raft of major new social welfare programs, and was promptly forced to cut everything back when the deficit ballooned.
austerity program by Abu Yahya May 5, 2010
IMF
(ECONOMICS) international bank created after World War 2 to coordinate currency stabilization. Main policy tool consists of lending money to central bank of countries facing a liquidity crisis.
In some cases, as when a member government is insolvent, the IMF will impose a structural adjustment program (SAP) requiring the government to jettison programs it has to serve the poor. For this reason, the IMF is often harshly criticized.
In some cases, as when a member government is insolvent, the IMF will impose a structural adjustment program (SAP) requiring the government to jettison programs it has to serve the poor. For this reason, the IMF is often harshly criticized.
bank of issue
(ECONOMICS) A bank that is empowered to issue currency. In the USA, between 1863 (National Bank Act) and 1935, any bank with a federally issued charter (i.e., a national bank) was allowed to issue currency. After 1914, few did.
The US Treasury issued a small number of banknotes until 1971.
In the UK, banknotes of the Bank of England are legal tender; but the Royal Bank of Scotland is also a bank of issue.
Today, in almost every country of the world, the sole bank of issue is the central bank of that country.
The US Treasury issued a small number of banknotes until 1971.
In the UK, banknotes of the Bank of England are legal tender; but the Royal Bank of Scotland is also a bank of issue.
Today, in almost every country of the world, the sole bank of issue is the central bank of that country.
bank of issue by Abu Yahya May 5, 2010
natural log
(MATHEMATICS) a logarithm whose base is e (2.71828...)
The number e is a transcendental irrational, which means that it has infinitely many decimal places but cannot be expressed as a fraction.
A useful feature of the natural log function is that the derivative of (ln x) is 1/x.
The number e is a transcendental irrational, which means that it has infinitely many decimal places but cannot be expressed as a fraction.
A useful feature of the natural log function is that the derivative of (ln x) is 1/x.
natural log by Abu Yahya May 5, 2010
Underwriter
(FINANCE) a person or entity that lends money to someone else by creating securities and selling them. In commercial milieux, this is investment banking, and the most famous investment bank is Goldman Sachs. Another major investment bank is Morgan Stanley.
Most major countries have a ministry of the treasury, or ministry of finance, that issues bonds for the government and is responsible for selling them to raise money for government borrowing. These are treasury securities.
Most major countries have a ministry of the treasury, or ministry of finance, that issues bonds for the government and is responsible for selling them to raise money for government borrowing. These are treasury securities.
Underwriter by Abu Yahya May 5, 2010
national bank
(US HISTORY) federally chartered bank. In 1863, the US Congress passed the National Bank Act that empowered banks with federal charters to issue currency backed by US Treasury securities.
National bank notes were issued until 1935; after 1928, they looked exactly the same as "national notes," or paper money circulated by the US Treasury.
(The US Treasury stopped issuing banknotes in 1971. Such notes were distinguished from federal reserve notes by a red seal and the absence of the legend, "federal reserve note" at the top of the bill).
National bank notes were issued until 1935; after 1928, they looked exactly the same as "national notes," or paper money circulated by the US Treasury.
(The US Treasury stopped issuing banknotes in 1971. Such notes were distinguished from federal reserve notes by a red seal and the absence of the legend, "federal reserve note" at the top of the bill).
Any national bank could issue currency equal in value to 90% of US treasury securities that it had on deposity with the Treasury. National bank notes initially had their own distinctive engraving, but after 1928 were visually almost indistinguishable from federal reserve notes.
national bank by Abu Yahya May 5, 2010
Treasury securities
(FINANCE) bonds issued by the treasury of a country.
In the USA, the US Department of the Treasury serves as the underwriter for the federal government; it floats bonds and short term securities ("paper"), which is then used by central banks around the world as hot money.
Includes
--the t-bill: short term (>91 days); discounted
--the treasury note: up to 10 years; coupons
--the treasury bond: longer than 20 years; coupons
In the USA, the US Department of the Treasury serves as the underwriter for the federal government; it floats bonds and short term securities ("paper"), which is then used by central banks around the world as hot money.
Includes
--the t-bill: short term (>91 days); discounted
--the treasury note: up to 10 years; coupons
--the treasury bond: longer than 20 years; coupons
Treasury securities by Abu Yahya May 5, 2010