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What does Crowding Out mean?

A reduction in private investment due to increased government borrowing driving up interest rates.

Crowding Out in a sentence
Increased government borrowing can lead to crowding out, making loans more expensive for private businesses.

Crowding Out in German, French, Spanish and Italian

German
Verdrängungseffekt
also Crowding-out

Verdrängung privater Investitionen durch staatliche Kreditaufnahme.

French
Effet d'éviction

Baisse de l'investissement privé causée par l'augmentation de la dette publique.

Spanish
Efecto de desplazamiento
also Efecto de exclusión

Cuando la deuda pública absorbe recursos y desplaza a la inversión privada.

Italian
Spiazzamento
also Effetto di spiazzamento

Fenomeno di riduzione dell'investimento privato dovuto al deficit pubblico.

Common phrases with Crowding Out

  • phenomenon crowding out
  • government borrowing crowding out
  • private investment crowding out

More Economics terms

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