Definition of Pump priming:
Pump priming assumes that the economy must be primed to function properly once again. In this regard, government spending is assumed to stimulate private spending, which in turn should lead to economic expansion.
Injection of (relatively small) sums of money by a government into a depressed economy through commissioning of public works. Its objective is to increase purchasing power of people that will stimulate demand which in turn will boost private sector investment ... and so more and more money will be pumped into the economy.
Pump priming is the action taken to stimulate an economy, usually during a recessionary period, through government spending and interest rate and tax reductions. The term pump priming is derived from the operation of older pumps - a suction valve had to be primed with water so that the pump would function properly.
The introduction of fluid into a pump to prepare it for working.
The stimulation of economic activity by investment.
How to use Pump priming in a sentence?
- A pump-priming fund.
- Generally, it involves pumping small amounts of government funds into a depressed economy to encourage growth.
- When air pressure is negative, air must be evacuated to accomplish pump priming.
- After extensive discussion and economic analysis, the panel convened with a resolution to use the technique of pump priming to accelerate what the analysts assured them was almost sure to be a return to profitability in the depressed area.
- Pump priming refers to the steps taken to stimulate spending in an economy during or after a recession.
- The Government chooses to do Pump Priming to keep the flow of money in the community... to help serve people and keep things flowing smoothy so that small amounts of money get spread through small acts in the community.
- The pump priming was a useful economic tool to catalyze the economy and generate incentive to spend the precious dollars.
Meaning of Pump priming & Pump priming Definition