Greece deal – Jargon Buster

A small number of the jargon used in reports coming out out the interesting movements across Europe as the Greek deal is struck for the next 4 months. I will add to the list over the next couple of days.

Feel free to comment with any questions regarding the jargon or deal.

GDP = Gross domestic product
This is a measure of national output and is used as an indicator for how big or small the economy is.

GDP per capita = Gross domestic product per head of the population.
The same as above but divided among the population to allow for differentiation of performance between countries with large or small populations.

Primary (budget) surplus = A national government in this case Greece is running a primary surplus because ignoring debt repayments they are bringing in more money than is being spent. This may not be the case with debt interest payments included however.

ECB = European Central Bank

The central bank is the institution in charge of monetary policy, such as Quantitative Easing (expanding the money supply) and interest rates. They have a board made up of the finance ministers that make up the Eurozone.

Eurozone = Euro using countries

QE = Quantitative Easing
The expansion of the money supply.

Trokia = The group of institutions setting the restraints on Greece via the bailout conditions. This consists of The IMF, the ECB and the European Commission.

IMF = International Monetary Fund

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