Okuzeka
Economics vocabulary · Fiscal Policy and Public Finance

Bailout

Meaning in economics, with examples

/ˈbeɪlaʊt/nounCommon term

In economics, bailout means: Financial help given by a government or an international body to a company, bank or country that is about to collapse or default.

In Turkish: kurtarma paketi, finansal kurtarma

How it is used

Bailouts were common during the 2008 financial crisis and the euro area debt crisis. The phrasal verb is bail out: the government bailed out the banks. Critics warn of moral hazard, the risk that rescued firms will take bigger risks because they expect to be saved again.

Example sentences

  1. The airline received a government bailout worth 3 billion euros.

  2. Many taxpayers were angry about paying for bank bailouts.

Common collocations

  • bailout package
  • bank bailout
  • IMF bailout
  • receive a bailout
  • bail out the banks
  • financial crisisA sudden and serious breakdown in the financial system, for example when banks fail, asset prices collapse or a country can no longer borrow.
  • IMFShort for International Monetary Fund: an international organisation that monitors the world economy and lends to member countries facing balance of payments problems.
  • defaultTo fail to pay interest or repay a loan or bond on time; the noun default describes this failure.
  • public debtThe total amount of money that a government owes to lenders at home and abroad, built up over years of borrowing.

More terms: Fiscal Policy and Public Finance

Practise with graded reading

Reading at the right level is the fastest way to make new words stick. Pick free English books by level:

This page explains English vocabulary for learners. It is not financial advice.