leakage

Leakage

Release of information selectively or not before official public announcement.

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Leakage

1. In Keynesian economics, the process of removing money from the economy. Savings, imports, and taxes are leaked out of the economy, though they may come back in through the spending of one's savings, exports, and government injections. Keynes' circular flow model subtracted the value of leakages from national output to identify aggregate output. Thus, it is necessary to know the value leakages in order to calculate the aggregate national output.

2. In credit, money borrowed from a bank that is not redeposited into that bank, which primarily occurs through default. In this sense, leakage reduces the ability of a bank to extend credit.

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leakage

A measure of retail sales lost by a community to a competitive market, indicating the need for more retail development in an area.