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EC1202
Week 8
| Term | Definition |
|---|---|
| Government/National/Public Debt | Money owed by the state to others |
| How to fund expenditure? | Government borrow money by issuing bonds |
| Who manages the Irish National Debt? | National Treasury Management Agency |
| NTMA main role | Arrange loans and managing existing debt to that the government can fund spending and meet debt obligations |
| Growth and stability Pact | The need for a sound fiscal policy to ensure smooth functioning of the EMU |
| Growth and Stability Pact 2 rules | 1. Restrict budget deficits to a maximum of 3% of GDP 2. Maintain national debt below 60% of GDP |
| Sovereign Wealth Funds | State owned investment fund that manages a country's surplus money for long-term national benefit |
| Where do government usually invest the SWF funds? | Stocks/Bonds/Infrastructure |
| Why do government usually invest in SWF funds? | To save surplus revenues, protect their economies from shocks, and invest long-term for the future generation |
| Irish Strategic Investment Fund | Sovereign development fund used to invest on a commerical basis to support economic activity and employment in Ireland |
| Where do ISIF invest? | Areas such as climate, housing, businesses, food and agriculture |
| Tiger Economy | A country who experiences rapid growth, along with increase in living standards and industrialization |
| What is a tiger economy often associated with? | High export growth, foreign investment and government-led reforms |
| Who wrote the Celtic Tiger book? | Kevin Gardiner |
| What impacts were there of the celtic tiger? | 1. Amazing acceleration of growth of output 2. Almost equally amazing acceleration in growth of GDP per capita 3. |