medium-term financial strategy

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Medium-Term Financial Strategy

A financial strategy with a term longer than the short term but shorter than the long term. The exact length varies according to the usage; it could be a few weeks or a few years. In general, however, a medium-term financial strategy outlines investment and other financial goals for any time between roughly six months and one year.

medium-term financial strategy (MTFS)

a monetarist strategy (see MONETARISM) employed by the UK government to control the economy from 1980 down to the early 1990s. The MTFS set out a target range for the growth of the MONEY SUPPLY and target values for the PUBLIC-SECTOR BORROWING REQUIREMENT, expressed as a percentage of GROSS DOMESTIC PRODUCT. The purpose of the medium-term financial strategy was to provide a known firm base for the operation of government MONETARY POLICY, to assist in the control of public expenditure and to influence the public's expectations about future rates of INFLATION. See alsoMACROECONOMIC POLICY, MONEY SUPPLY/SPENDING LINKAGES.
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