644 B
644 B
Sinking Fund
Definition
A dedicated fund established to gradually pay off public debt, typically created from surplus revenues or savings from reduced interest rates, intended to accumulate over time for debt reduction.
Source Chapter
Book V, Chapter 3
Context
Smith discusses sinking funds as a mechanism for debt reduction that was sometimes created from savings when interest rates were reduced, though he notes these funds were often diverted to other purposes.
Economic Domain
Regulation