Thursday, November 08, 2012

New Words on Macro-economy

Recently I have seen new words in the newspaper related to macro-economy. This is a reminder for myself:

It is a time of bad economic conditions where the government cuts its spending or increases taxes to reduce its budget deficit and debt.

2)Credit Crunch
As creditors become unwilling to lend money to businesses or individuals because debtors increase the risk of default due to the economic and political conditions.

3)Fiscal Cliff
In the US, Bush tax breaks end and the tax increases and spending cuts begin at the end of 2012, which could push the US economy back into recession.

4) Operation Twist
In an attempt to lower long-term interest rates with central bank's balance sheet unchanged, central bank buys long-term government bonds and sells short-term bonds.


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