crowding out

Definition

A situation in which the government is borrowing heavily while businesses and individuals also want to borrow. The former can always pay the market interest rate, but the latter cannot, and is crowded out.

Use crowding out in a sentence

You may find that there is some crowding out going on and you will not be able to borrow anything for awhile.

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The crowding out that occurred stifled the private industry but was a necessary action due to the expensive war taking place.

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The government has been crowding out and leaving certain companies unable to find any lenders who are able to provide them with the loan that they are seeking.

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