|compensatory finance, Also called: pump priming government spending in excess of revenues so that a budget deficit is incurred, which is financed by borrowing: recommended by Keynesian economists in order to increase economic activity and reduce unemployment|
|Main Entry:||deficit financing|
|Part of Speech:||n|
|Definition:||the financing of government spending by borrowing more money rather than taxation|
A government policy of financing large public expenditures by borrowing money rather than by raising taxes; also called deficit spending.