fiscal policynoun phrase
FIS-kul POL-ih-see
Government decisions about taxation and public spending to influence economic activity. Distinct from monetary policy, which is controlled by the central bank.
"During COVID-19, governments deployed expansionary fiscal policy — cutting taxes and dramatically increasing spending."
government spendingnoun phrase
GUV-ern-ment SPEND-ing
The total amount spent by the public sector on goods, services, salaries, and transfers to citizens.
"Government spending on defense has risen in every NATO country since Russia's invasion of Ukraine."
taxationnoun (uncountable)
tak-SAY-shun
The system by which governments collect money from individuals and businesses to fund public services.
"Progressive taxation means higher earners pay a greater percentage of their income in tax."
national debtnoun phrase
NASH-un-ul det
The total accumulated amount owed by a national government to its creditors — the sum of all past budget deficits.
"The US national debt exceeded $34 trillion in 2024 — approximately $100,000 per citizen."
war bondsnoun phrase
wor bondz
Government bonds issued specifically to finance military conflict, sold to citizens as both a financial product and a patriotic act.
"In both World Wars, governments sold war bonds to citizens to fund the conflict."
military spendingnoun phrase
MIL-ih-ter-ee SPEND-ing
Government expenditure on armed forces, weapons systems, and national defense infrastructure.
"NATO members are obligated to spend at least 2% of GDP on military spending."
sanctionnoun
SANK-shun
An economic restriction — trade ban, asset freeze, travel ban — imposed on a country or individual to pressure a change in behavior.
"Financial sanctions are designed to pressure governments by cutting off access to global markets and banking."
asset freezenoun phrase
AS-et freez
A legal action preventing a person, company, or government from accessing, spending, or transferring assets held abroad.
"The EU imposed an asset freeze on Russian oligarchs, blocking access to their European bank accounts and properties."
petrodollarnoun
PET-roh-dol-er
US dollars earned by oil-exporting countries, which are typically recycled into US financial assets — propping up demand for the dollar.
"The petrodollar system means that global oil trade reinforces demand for US dollars and US government bonds."
energy dependencynoun phrase
EN-er-jee deh-PEN-den-see
A country's reliance on foreign sources for energy — creating economic and political vulnerability.
"Europe's energy dependency on Russian gas became a critical vulnerability in 2022."
economic warfarenoun phrase
ee-kuh-NOM-ik WOR-fair
The use of economic tools — sanctions, tariffs, embargoes, asset seizures — to weaken an adversary without military force.
"Economic warfare is now as strategically significant as military force in geopolitical competition."
foreign aidnoun phrase
FOR-en ayd
Financial assistance, goods, or services given by one country to another — often tied to political, military, or economic conditions.
"Foreign aid is often tied to conditions — political alignment, purchasing agreements, or required economic reforms."
proxy warnoun phrase
PROK-see wor
A conflict in which major powers support opposing sides without directly fighting each other — using others to fight on their behalf.
"The Cold War was fought largely through proxy wars — in Korea, Vietnam, Angola, and Afghanistan."
reparationsnoun (plural)
rep-uh-RAY-shunz
Financial compensation paid by one country to another for damages caused — typically imposed after a war by the victorious power.
"After WWI, Germany's enormous reparations burden contributed to the instability that led to WWII."
budget deficitnoun phrase
BUJ-it DEF-ih-sit
When a government spends more than it collects in tax revenue in a given year — the shortfall is financed by borrowing.
"A budget deficit is financed by issuing bonds — government borrowing that must be repaid with interest."
sovereign wealth fundnoun phrase
SOV-er-un welth fund
A state-owned investment fund, typically built from revenues from natural resources, invested globally on behalf of the nation.
"Norway's Government Pension Fund — the world's largest sovereign wealth fund — manages $1.7 trillion from oil revenues."
geopolitical risknoun phrase
jee-oh-puh-LIT-ih-kul risk
The risk to investments and business operations arising from political events, wars, or shifts in international relations.
"Geopolitical risk rose sharply after Russia's invasion of Ukraine, affecting energy prices and supply chains globally."
capital controlsnoun phrase
KAP-ih-tul kun-TROHLZ
Government restrictions on money moving in or out of a country — used to prevent capital flight during a crisis.
"Russia imposed capital controls after the invasion, preventing citizens from transferring money abroad."
SWIFTabbreviation
swift
Society for Worldwide Interbank Financial Telecommunication — the global messaging network used to process international financial transfers between banks.
"Cutting Russia off from SWIFT was described as a financial nuclear weapon — immediately impeding international payments."
financial weaponnoun phrase
fy-NAN-shul WEP-un
An economic or financial tool — sanctions, dollar access, SWIFT exclusion — used to exert pressure or punishment on another country.
"The dollar's reserve currency status is America's most powerful financial weapon."
economic blockadenoun phrase
ee-kuh-NOM-ik bluh-KAYD
A coordinated effort to prevent a country from conducting international trade or financial transactions.
"The comprehensive sanctions regime amounted to an economic blockade of Iran."
dollar weaponizationnoun phrase
DOL-er WEP-un-ih-ZAY-shun
The use of US dollar dominance as a tool of foreign policy — freezing reserves, cutting off access to dollar clearing, imposing secondary sanctions.
"Freezing Russia's $300 billion in reserves accelerated global fears of dollar weaponization."
deficit spendingnoun phrase
DEF-ih-sit SPEND-ing
When a government deliberately spends more than its revenues, borrowing to cover the difference — often used to stimulate the economy.
"Keynes advocated deficit spending during recessions to stimulate demand when the private sector would not."