Reserve bank credit

Unless otherwise defined, a short-term loan granted by a central bank to public sector entities to bridge liquidity shortages in the course of budget execution. – In the European
monetary union, such loans by the central bank to public budgets are prohibited. – See ECB Fall from Grace, Italian Method.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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