NIRP and Primary surplus: Difference between pages

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Abbreviation for Negative interest rate policy.
''Central government finance''.


NIRP is a policy of a central bank to keep (short-term) interest rates in the economy as low as it may. The central bank effects this by reducing its own interest charges for borrowings by financial institutions or its payments of interest on deposits taken from those institutions not merely to a 0% nominal rate but to some actually negative nominal rate.
A country's primary surplus is the component of the fiscal surplus that is comprised of current government spending less current income from taxes, and excludes interest paid on government debt.  


Note that the [[real interest rate]] in the economy may be negative or positive irrespective of the nominal rate being negative, it being the difference between rate of inflation in the economy and interest rates paid or received.
If a country has larger levels of income relative to current spending, it is said to have a primary surplus.  If it has larger levels of current spending relative to income, it is said to have a primary deficit.




==See also==
<span style="color:#4B0082">'''''Greece exits bailout programme'''''</span>
* [[Interest rate]]
 
* [[Nominal rate]]
:"... Greece is reemerging onto the global financial scene, having exited its bailout programme.
* [[ZIRP]]
 
:The country can again raise money for itself on the markets, albeit at an expensive rate due to its poor credit rating and weak economy.
 
:It also has stringent criteria to meet including a primary surplus of 3.5% of GDP until 2022..."
 
:''The Treasurer magazine, October 2018, p6 - Agenda.''
 
 
== See also ==
* [[Bailout]]
* [[Credit rating]]
* [[Deficit]]
* [[GDP]]
* [[Primary]]
* [[Surplus]]
 
[[Category:The_business_context]]

Revision as of 15:44, 5 April 2022

Central government finance.

A country's primary surplus is the component of the fiscal surplus that is comprised of current government spending less current income from taxes, and excludes interest paid on government debt.

If a country has larger levels of income relative to current spending, it is said to have a primary surplus. If it has larger levels of current spending relative to income, it is said to have a primary deficit.


Greece exits bailout programme

"... Greece is reemerging onto the global financial scene, having exited its bailout programme.
The country can again raise money for itself on the markets, albeit at an expensive rate due to its poor credit rating and weak economy.
It also has stringent criteria to meet including a primary surplus of 3.5% of GDP until 2022..."
The Treasurer magazine, October 2018, p6 - Agenda.


See also

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