Gross versus net borrowing
Under gross borrowing is defined as the sum of all loans taken out in a year a public budget. The net borrowing results from the gross borrowing after deducting the repayments made in the relevant year. From an economic point of view, only net borrowing is important and it is the only information reported in the media. The term budget balance corresponds to net borrowing, but has the opposite sign. The term net new debt is used synonymously for net borrowing .
The term net borrowing is used less often in the context of the overall economic demand of all economic subjects ( private households , companies , national budget, domestic / foreign ) within an ( open ) economy or within just a single sector such as the private companies of an economy.
The Central Bank determined within the financial accounts the revenue as overspending (sectoral financial balances) and the correlating net borrowing of sectors per calendar year, if not the only borrowing to finance an output surplus (deficit) of a single sector, but also monetary reserves (unused surplus revenues from Previous periods of the respective sector) are used, the net borrowing is lower than the respective deficit (from the current financial year) of the respective sector ("internal financing"). Apparently paradoxically, however, the increased accumulation of monetary reserves in one sector increases the borrowing requirements of the other.
The net borrowing of the sectors also receives special attention in the economic context from the credit and balance mechanics . The net borrowing (net debt) of one sector gives rise to net claims for other sectors . The waiver of spending by private non-entrepreneurs for the purpose of increasing their own financial assets leaves a budget gap for companies, which is why Wolfgang Stützel also pointed out that in order to avoid higher indebtedness in the corporate sector with the risk of increased economic fluctuations, it can be essential to compensate for net borrowing by the state. If an export surplus (net foreign borrowing) of a suitable amount ( balance of payments ) can compensate for the macroeconomic budget gap of the domestic companies or the private sector can compensate (and forego income surpluses in the future), there is of course no need for financing from the domestic government's net borrowing.
- Dieter Brümmerhoff, Michael Grömling: National Accounts. 9th edition. Munich 2011, p. 26 (online at: books.google.at )
- Klaus Rittenbruch, Macroeconomics , 11th Edition. Munich 2000, p. 34 (online at: books.google.at ) ( Memento of the original from October 19, 2013 in the Internet Archive ) Info: The archive link was inserted automatically and not yet checked. Please check the original and archive link according to the instructions and then remove this notice.
Advisory Council on the Assessment of Overall Economic Development: Annual Report 2013/14: Against a backward-looking economic policy. (PDF; 6.0 MB) p. 76:
"The significantly lower demand for corporate loans - especially from large companies - is, according to the survey, mainly due to the use of internal financing by companies."
- Heinz-Peter Spahn: Monetary Policy. Financial markets, new macroeconomics and interest rate strategies. 2nd Edition. Munich 2011, p. 73. (online at: books.google.at )
Wolfgang Stützel: On the influence of public debt on the capital market interest rate. In: National Debt Controversy. Cologne 1981. pp. 50–51:
“In the course of every increase in government net borrowing, ie increased government spending surpluses (compared with the previous period or with previously existing plans), the revenue surplus of all other economic entities as a whole increases to exactly the same extent ; for some of them this is reflected in the form of higher revenue surpluses, for others in the form of lower expenditure surpluses. "
Wolfgang Stützel: Economic balance mechanics. Tübingen 2011 (reprint of the 2nd edition). P. 80:
"The entrepreneurial profits always lag behind the entrepreneur's expenditure for consumption and investment by exactly the amount by which the non- entrepreneurs build up income surpluses."
Wilhelm Lautenbach (Ed. Wolfgang Stützel): Interest, credit and production (PDF; 1.2 MB), Tübingen 1952, pp. 48–49:
“If the non-entrepreneurs do not leave out what they have collected, they save So, then the loan volume grows to the extent that you save from appointment to appointment. Through these savings, the non-entrepreneurs participate in social wealth. The entrepreneur's need for credit arises from the fact that non-entrepreneurs save, irrespective of whether they are private or whether it is the public sector that has surpluses. "
Wilhelm Lautenbach: Credit expansion in the upswing. In: Wirtschaftskurve 1936. ( PDF ) p. 1:
“If the state takes credit on a large scale, the entire credit economy is loosened up. The money and credit markets are becoming liquid, entrepreneurs are becoming liquid, their bank loans are decreasing, business deposits are increasing [...]. "
- Federal Agency for Political Education (ed.): From politics and contemporary history. Issues 27–52. Bonn 1981. p. 18. (online at: books.google.at )