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Deleveraging

Index Deleveraging

At the micro-economic level, deleveraging refers to the reduction of the leverage ratio, or the percentage of debt in the balance sheet of a single economic entity, such as a household or a firm. [1]

67 relations: Asset, Austerity, Balance sheet, Bond market, Business cycle, Capital market, Carmen Reinhart, Collateral (finance), Credit crunch, Credit cycle, Currency crisis, Debt, Debt deflation, Debt-to-GDP ratio, Default (finance), Deflation, Down payment, Economic growth, Economic history of Chile, Emerging markets, Equity (finance), Federal Reserve System, Financial crisis, Financial crisis of 2007–2008, Financial intermediary, Financial market, Fiscal policy, Flight-to-quality, Government budget balance, Government debt, Great Depression in the United States, Great Recession, Gross domestic product, Hyman Minsky, Inflation, Intrinsic value (finance), Irving Fisher, John Geanakoplos, Kenneth Rogoff, Latin American debt crisis, Leverage (finance), Leverage cycle, Liquidity constraint, Liquidity trap, Macroeconomics, Marginal propensity to save, Market liquidity, Maturity (finance), McKinsey & Company, Microeconomics, ..., Monetary policy, National accounts, Nominal interest rate, Paradox of thrift, Paul Krugman, Private sector, Public sector, Real gross domestic product, Real interest rate, Recession, Security (finance), Share (finance), Structured investment vehicle, Unemployment, Valuation (finance), 1997 Asian financial crisis, 1998–2002 Argentine great depression. Expand index (17 more) »

Asset

In financial accounting, an asset is an economic resource.

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Austerity

Austerity is a political-economic term referring to policies that aim to reduce government budget deficits through spending cuts, tax increases, or a combination of both.

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Balance sheet

In financial accounting, a balance sheet or statement of financial position is a summary of the financial balances of an individual or organization, whether it be a sole proprietorship, a business partnership, a corporation, private limited company or other organization such as Government or not-for-profit entity.

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Bond market

The bond market (also debt market or credit market) is a financial market where participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the secondary market.

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Business cycle

The business cycle, also known as the economic cycle or trade cycle, is the downward and upward movement of gross domestic product (GDP) around its long-term growth trend.

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Capital market

A capital market is a financial market in which long-term debt (over a year) or equity-backed securities are bought and sold.

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Carmen Reinhart

Carmen M. Reinhart (née Castellanos, born October 7, 1955) is the Minos A. Zombanakis Professor of the International Financial System at Harvard Kennedy School.

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Collateral (finance)

In lending agreements, collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan.

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Credit crunch

A credit crunch (also known as a credit squeeze or credit crisis) is a sudden reduction in the general availability of loans (or credit) or a sudden tightening of the conditions required to obtain a loan from banks.

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Credit cycle

The credit cycle is the expansion and contraction of access to credit over time.

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Currency crisis

A currency crisis is a situation in which serious doubt exists as to whether a country's central bank has sufficient foreign exchange reserves to maintain the country's fixed exchange rate.

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Debt

Debt is when something, usually money, is owed by one party, the borrower or debtor, to a second party, the lender or creditor.

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Debt deflation

Debt deflation is a theory that recessions and depressions are due to the overall level of debt rising in real value because of deflation, causing people to default on their consumer loans and mortgages.

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Debt-to-GDP ratio

In economics, the debt-to-GDP ratio is the ratio between a country's government debt (a cumulative amount) and its gross domestic product (GDP) (measured in years).

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Default (finance)

In finance, default is failure to meet the legal obligations (or conditions) of a loan, for example when a home buyer fails to make a mortgage payment, or when a corporation or government fails to pay a bond which has reached maturity.

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Deflation

In economics, deflation is a decrease in the general price level of goods and services.

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Down payment

Down payment (or downpayment, also called a deposit in British English), is a payment used in the context of the purchase of expensive items such as a car and a house, whereby the payment is the initial upfront portion of the total amount due and it is usually given in cash at the time of finalizing the transaction.

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Economic growth

Economic growth is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time.

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Economic history of Chile

The economy of Chile has shifted substantially over time from the heterogeneous economies of the diverse indigenous peoples to an early husbandry-oriented economy and finally to one of raw material export and a large service sector.

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Emerging markets

An emerging market is a country that has some characteristics of a developed market, but does not meet standards to be a developed market.

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Equity (finance)

In accounting, equity (or owner's equity) is the difference between the value of the assets and the value of the liabilities of something owned.

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Federal Reserve System

The Federal Reserve System (also known as the Federal Reserve or simply the Fed) is the central banking system of the United States of America.

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Financial crisis

A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose a large part of their nominal value.

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Financial crisis of 2007–2008

The financial crisis of 2007–2008, also known as the global financial crisis and the 2008 financial crisis, is considered by many economists to have been the worst financial crisis since the Great Depression of the 1930s.

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Financial intermediary

A financial intermediary is an institution or individual that serves as a middleman among diverse parties in order to facilitate financial transactions.

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Financial market

A financial market is a market in which people trade financial securities and derivatives such as futures and options at low transaction costs.

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Fiscal policy

In economics and political science, fiscal policy is the use of government revenue collection (mainly taxes) and expenditure (spending) to influence the economy.

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Flight-to-quality

A flight-to-quality, or flight-to-safety, is a financial market phenomenon occurring when investors sell what they perceive to be higher-risk investments and purchase safer investments, such as US Treasuries or gold.

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Government budget balance

A government budget is a financial statement presenting the government's proposed revenues and spending for a financial year.

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Government debt

Government debt (also known as public interest, public debt, national debt and sovereign debt) is the debt owed by a government.

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Great Depression in the United States

The Great Depression began in August 1929, when the United States economy first went into an economic recession.

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Great Recession

The Great Recession was a period of general economic decline observed in world markets during the late 2000s and early 2010s.

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Gross domestic product

Gross domestic product (GDP) is a monetary measure of the market value of all final goods and services produced in a period (quarterly or yearly) of time.

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Hyman Minsky

Hyman Philip Minsky (September 23, 1919 – October 24, 1996) was an American economist, a professor of economics at Washington University in St. Louis, and a distinguished scholar at the Levy Economics Institute of Bard College.

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Inflation

In economics, inflation is a sustained increase in price level of goods and services in an economy over a period of time.

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Intrinsic value (finance)

In finance, intrinsic value refers to the value of a company, stock, currency or product determined through fundamental analysis without reference to its market value.

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Irving Fisher

Irving Fisher (February 27, 1867 – April 29, 1947) was an American economist, statistician, inventor, and Progressive social campaigner.

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John Geanakoplos

John Geanakoplos (born March 18, 1955) is an American economist, and the current James Tobin Professor of Economics at Yale University.

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Kenneth Rogoff

Kenneth Saul "Ken" Rogoff (born March 22, 1953) is an American economist and chess Grandmaster.

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Latin American debt crisis

The Latin American debt crisis (Crisis de la deuda latinoamericana) was a financial crisis that originated in the early 1980s (and for some countries starting in the 1970s), often known as the "lost decade", when Latin American countries reached a point where their foreign debt exceeded their earning power and they were not able to repay it.

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Leverage (finance)

In finance, leverage (sometimes referred to as gearing in the United Kingdom and Australia) is any technique involving the use of borrowed funds in the purchase of an asset, with the expectation that the after tax income from the asset and asset price appreciation will exceed the borrowing cost.

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Leverage cycle

Leverage is defined as the ratio of the asset value to the cash needed to purchase it.

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Liquidity constraint

In economics, a liquidity constraint is a form of imperfection in the capital market which imposes a limit on the amount an individual can borrow, or an alteration in the interest rate they pay.

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Liquidity trap

A liquidity trap is a situation, described in Keynesian economics, in which, "after the rate of interest has fallen to a certain level, liquidity preference may become virtually absolute in the sense that almost everyone prefers cash holding a debt which yields so low a rate of interest."Keynes, John Maynard (1936) The General Theory of Employment, Interest and Money, United Kingdom: Palgrave Macmillan, 2007 edition, A liquidity trap is caused when people hoard cash because they expect an adverse event such as deflation, insufficient aggregate demand, or war.

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Macroeconomics

Macroeconomics (from the Greek prefix makro- meaning "large" and economics) is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole.

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Marginal propensity to save

The marginal propensity to save (MPS) is the fraction of an increase in income that is not spent on an increase in consumption.

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Market liquidity

In business, economics or investment, market liquidity is a market's feature whereby an individual or firm can quickly purchase or sell an asset without causing a drastic change in the asset's price.

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Maturity (finance)

In finance, maturity or maturity date refers to the final payment date of a loan or other financial instrument, at which point the principal (and all remaining interest) is due to be paid.

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McKinsey & Company

McKinsey & Company is an American worldwide management consulting firm.

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Microeconomics

Microeconomics (from Greek prefix mikro- meaning "small") is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms.

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Monetary policy

Monetary policy is the process by which the monetary authority of a country, typically the central bank or currency board, controls either the cost of very short-term borrowing or the monetary base, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency.

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National accounts

National accounts or national account systems (NAS) are the implementation of complete and consistent accounting techniques for measuring the economic activity of a nation.

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Nominal interest rate

In finance and economics, the nominal interest rate or nominal rate of interest is either of two distinct things.

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Paradox of thrift

The paradox of thrift (or paradox of saving) is a paradox of economics.

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Paul Krugman

Paul Robin Krugman (born February 28, 1953) is an American economist who is currently Distinguished Professor of Economics at the Graduate Center of the City University of New York, and a columnist for The New York Times.

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Private sector

The private sector is the part of the economy, sometimes referred to as the citizen sector, which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the State.

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Public sector

The public sector (also called the state sector) is the part of the economy composed of both public services and public enterprises.

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Real gross domestic product

Real Gross Domestic Product (real GDP) is a macroeconomic measure of the value of economic output adjusted for price changes (i.e., inflation or deflation).

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Real interest rate

The real interest rate is the rate of interest an investor, saver or lender receives (or expects to receive) after allowing for inflation.

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Recession

In economics, a recession is a business cycle contraction which results in a general slowdown in economic activity.

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Security (finance)

A security is a tradable financial asset.

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Share (finance)

In financial markets, a share is a unit used as mutual funds, limited partnerships, and real estate investment trusts.

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Structured investment vehicle

A structured investment vehicle (SIV) is a non-bank financial institution established to earn a credit spread between the longer-term assets held in its portfolio and the shorter-term liabilities it issues.

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Unemployment

Unemployment is the situation of actively looking for employment but not being currently employed.

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Valuation (finance)

In finance, valuation is the process of determining the present value (PV) of an asset.

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1997 Asian financial crisis

The Asian financial crisis was a period of financial crisis that gripped much of East Asia beginning in July 1997 and raised fears of a worldwide economic meltdown due to financial contagion.

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1998–2002 Argentine great depression

The 1998–2002 Argentine Great Depression was an economic depression in Argentina, which began in the third quarter of 1998 and lasted until the second quarter of 2002.

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Redirects here:

Delevarage, Deleverage, Household deleveraging.

References

[1] https://en.wikipedia.org/wiki/Deleveraging

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