# Propensity to budget deficit

- Canonical URL: https://www.gerhardmerk.de/propensity-to-budget-deficit
- Post ID: 590887
- Modified: 2023-07-25T21:12:00+00:00
- Language: en

## Definition

The clearly empirical fact in democratic countries that - governments resort to debt before their re-election in order to appeal to certain groups of voters. - Sooner or later, this has an impact on the value of money. - The Stability and Growth Pact originally sought to curb such unsound fiscal policies in the euro area. - See bailout, monetary policy, currency swing, deficit spending, Minhas-Gerais problem, sustainability, nonaffectation principle, policy lag, government debt, debt stimulus. - Cf. ECB Monthly Bulletin, August 2005, pp. 69 f. (deficit propensity growing), pp. 76 f. (options for deficit reduction). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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