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Sovereign Default
A sovereign default is the failure or refusal of the government of a sovereign state to pay back its debt in full when due. Cessation of due payments (or receivables) may either be accompanied by that government's formal declaration that it will not pay (or only partially pay) its debts (repudiation), or it may be unannounced. A credit rating agency will take into account in its gradings capital, interest, extraneous and procedural defaults, and failures to abide by the terms of bonds or other debt instruments. Countries have at times escaped some of the real burden of their debt through inflation. This is not "default" in the usual sense because the debt is honored, albeit with currency of lesser real value. Sometimes governments devalue their currency. This can be done by printing more money to apply toward their own debts, or by ending or altering the convertibility of their currencies into precious metals or foreign currency at fixed rates. Harder to quantify than an int ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Sovereign State
A sovereign state is a State (polity), state that has the highest authority over a territory. It is commonly understood that Sovereignty#Sovereignty and independence, a sovereign state is independent. When referring to a specific polity, the term "country" may also refer to a constituent country, or a dependent territory. A sovereign state (polity), state is required to have a permanent population, defined territory, a government not under another, and the capacity to International relations, interact with other sovereign states. In actual practice, recognition or non-recognition by other states plays an important role in determining the status of a country. List of states with limited recognition, Unrecognized states often have difficulty engaging in Diplomacy, diplomatic relations with other sovereign states. History Since the end of the 19th century, almost the entire globe has been divided into sections (countries) with more or less defined borders assigned to different sta ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Gunboat Diplomacy
Gunboat diplomacy is the pursuit of foreign policy objectives with the aid of conspicuous displays of naval power, implying or constituting a direct threat of warfare should terms not be agreeable to the superior force. The term originated in the 19th century, during the age of imperialism, when Western powers, especially the United Kingdom, France, Germany and the United States would use their superior military capabilities, particularly their naval assets, to intimidate less powerful nations into granting concessions. The mere presence of warships off a country's coast was often enough to have a significant effect, making the actual use of force rarely necessary. Etymology The term "gunboat diplomacy" comes from the nineteenth-century period of imperialism, when Western powersfrom Europe and the United Stateswould intimidate other, less powerful entities into granting concessions through a demonstration of Western superior military capabilities, usually represented by t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Public Sector
The public sector, also called the state sector, is the part of the economy composed of both public services and public enterprises. Public sectors include the public goods and governmental services such as the military, law enforcement, public infrastructure, public transit, public education, along with public health care and those working for the government itself, such as elected officials. The public sector might provide services that a non-payer cannot be excluded from (such as street lighting), services which benefit all of society rather than just the individual who uses the service. Public enterprises, or state-owned enterprises, are self-financing commercial enterprises that are under public ownership which provide various private goods and services for sale and usually operate on a commercial basis. Organizations that are not part of the public sector are either part of the private sector or voluntary sector. The private sector is composed of the economic sec ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Austerity
In economic policy, austerity is a set of Political economy, political-economic policies that aim to reduce government budget deficits through Government spending, spending cuts, tax increases, or a combination of both. There are three primary types of austerity measures: higher taxes to fund spending, raising taxes while cutting spending, and lower taxes and lower government spending. Austerity measures are often used by governments that find it difficult to Government debt, borrow or meet their existing obligations to pay back loans. The measures are meant to reduce the budget deficit by bringing government revenues closer to expenditures. Proponents of these measures state that this reduces the amount of borrowing required and may also demonstrate a government's fiscal discipline to creditors and credit rating agencies and make borrowing easier and cheaper as a result. In most macroeconomic models, austerity policies which reduce government spending lead to increased unem ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Corruption
Corruption is a form of dishonesty or a criminal offense that is undertaken by a person or an organization that is entrusted in a position of authority to acquire illicit benefits or abuse power for one's gain. Corruption may involve activities like bribery, influence peddling, and embezzlement, as well as practices that are legal in many countries, such as lobbying. Political corruption occurs when an office-holder or other governmental employee acts in an official capacity for personal gain. Historically, "corruption" had a broader meaning concerned with an activity's impact on morals and societal well-being: for example, the ancient Greek philosopher Socrates was condemned to death in part for "corrupting the young". Contemporary corruption is perceived as most common in kleptocracies, oligarchies, narco-states, Authoritarianism, authoritarian states, and mafia states, however, more recent research and policy statements acknowledge that it also exists in wealthy capitalist e ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Conditionality
In political economy and international relations, conditionality is the use of conditions attached to the provision of benefits such as a loan, debt relief or bilateral aid. These conditions are typically imposed by international financial institutions or regional organizations and are intended to improve economic conditions within the recipient country. International financial institutions Conditionality is typically employed by the International Monetary Fund, the World Bank or a donor country with respect to loans, debt relief and financial aid. Conditionalities may involve relatively uncontroversial requirements to enhance aid effectiveness, such as anti-corruption measures, but they may involve highly controversial ones, such as austerity or the privatization of key public services, which may provoke strong political opposition in the recipient country. These conditionalities are often grouped under the label structural adjustment as they were prominent in the structural adj ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
International Monetary Fund
The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution funded by 191 member countries, with headquarters in Washington, D.C. It is regarded as the global lender of last resort to national governments, and a leading supporter of exchange-rate economic stability, stability. Its stated mission is "working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and poverty reduction, reduce poverty around the world." Established in July 1944 at the Bretton Woods Conference, primarily according to the ideas of Harry Dexter White and John Maynard Keynes, it started with 29 member countries and the goal of reconstructing the international monetary systems, international monetary system after World War II. In its early years, the IMF primarily focused on facilitating fixed exchange rates across the developed worl ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Greek Debt Crisis
Greek may refer to: Anything of, from, or related to Greece, a country in Southern Europe: *Greeks, an ethnic group *Greek language, a branch of the Indo-European language family **Proto-Greek language, the assumed last common ancestor of all known varieties of Greek **Mycenaean Greek, most ancient attested form of the language (16th to 11th centuries BC) **Ancient Greek, forms of the language used c. 1000–330 BC **Koine Greek, common form of Greek spoken and written during Classical antiquity **Medieval Greek or Byzantine Language, language used between the Middle Ages and the Ottoman conquest of Constantinople **Modern Greek, varieties spoken in the modern era (from 1453 AD) *Greek alphabet, script used to write the Greek language *Greek Orthodox Church, several Churches of the Eastern Orthodox Church *Ancient Greece, the ancient civilization before the end of Antiquity * Old Greek, the language as spoken from Late Antiquity to around 1500 AD *Greek mythology, a body of myths o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Supranational Union
A supranational union is a type of international organization and political union that is empowered to directly exercise some of the powers and functions otherwise reserved to State (polity), states. A supranational organization involves a greater transfer of or limitation of state sovereignty than other kinds of international organizations. The European Union (EU) has been described as a paradigmatic case of a supranational organization, as it has deep political, economic and social integration, which includes a Single market, common market, Schengen Area, joint border control, a European Court of Justice, supreme court, and regular Elections to the European Parliament, popular elections. Another method of decision-making in international organisations is intergovernmentalism, in which state governments play a more prominent role. Origin as a legal concept After the dropping of atomic bombs on Hiroshima and Nagasaki in August 1945, Albert Einstein spoke and wrote frequentl ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Regulator (economics)
A regulatory agency (regulatory body, regulator) or independent agency (independent regulatory agency) is a government authority that is responsible for exercising autonomous jurisdiction over some area of human activity in a licensing and regulating capacity. Examples of responsibilities include strengthening safety and standards, and/or to protect consumers in markets where there is a lack of effective competition. Examples of regulatory agencies that enforce standards include the Food and Drug Administration in the United States and the Medicines and Healthcare products Regulatory Agency in the United Kingdom; and, in the case of economic regulation, the Office of Gas and Electricity Markets and the Telecom Regulatory Authority in India. Legislative basis Regulatory agencies deal in the areas of administrative law, regulatory law, secondary legislation, and rulemaking (codifying and enforcing rules and regulations, and imposing supervision or oversight for the benefit of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Insolvency
In accounting, insolvency is the state of being unable to pay the debts, by a person or company ( debtor), at maturity; those in a state of insolvency are said to be ''insolvent''. There are two forms: cash-flow insolvency and balance-sheet insolvency. Cash-flow insolvency is when a person or company has enough assets to pay what is owed, but does not have the appropriate form of payment. For example, a person may own a large house and a valuable car, but not have enough liquid assets to pay a debt when it falls due. Cash-flow insolvency can usually be resolved by negotiation. For example, the bill collector may wait until the car is sold and the debtor agrees to pay a penalty. Balance-sheet insolvency is when a person or company does not have enough assets to pay all of their debts. The person or company might enter bankruptcy, but not necessarily. Once a loss is accepted by all parties, negotiation is often able to resolve the situation without bankruptcy. A company ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Haircut (finance)
In finance, a haircut is the difference between the current market value of an asset and the value ascribed to that asset for purposes of calculating regulatory capital or loan collateral. The amount of the haircut reflects the perceived risk of the asset falling in value in an immediate cash sale or liquidation. The larger the risk or volatility of the asset price, the larger the haircut. For example, United States Treasury bills, which are relatively safe and highly liquid assets, have little or no haircut, whereas more volatile or less marketable assets might have haircuts as high as 50%. Lower haircuts allow for more leverage. Haircut plays an important role in many kinds of trades, such as repurchase agreements (referred to in debt-instrument finance as "repo" but not to be confused with the concept of repossession denoted by that term in consumer finance) and reverse repurchase agreements ("reverse repo" in debt-instrument finance). In mass media, as well as in economi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
