Welcome to the Financial Times Lexicon

Browse thousands of words and phrases selected by Financial Times editors and suggest new terms for the glossary.


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Monetisation refers to the conversion of an object into money, which means that it is generally accepted as a medium of exchange. Metals are monetised as coins once they are standardised in weight and accepted as money.

Government debt can also be monetised, which occurs when a government replaces its interest-bearing debt with money.

ExampleHere is how the process of debt monetisation works.

When a government spends in excess of its tax revenue it must borrow from the public. The public purchases...