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EC1202

Week 8

TermDefinition
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.
Created by: peadarbailey1206
 

 



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