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shortage economy (P4)<br />An economy characterized by EXCEss DEMAND for many goods and services for substantial periods of time. This often happens because prices of basic necessities are kept below their market clearing levels for welfare reasons. In a CENTRALLY PLANNED ECONOMY, there is a tendency to adhere to the same set of prices for many years, not raising them as demand rises. Also, if the prices set by a government reflect its priorities and not those of consumers excess demand can easily develop.<br /><em>See also:</em> Soviet-type economy
hold-out (J3)<br />The time period between the expiry of an old labour contract and the signing of a new contract. During this period work continues under the old contract but a union may adopt a work-to-rule to strengthen its bargaining position. There are often hold-outs in US collective bargaining.
<strong>Voluntary Flexible Agreement (VFA)</strong> – Individually negotiated contract between a FFEL Program guarantor and the U.S. Department of Education. On October 7, 1998, President Clinton signed the Higher Education Amendments of 1998 (P.L. 105-244), authorizing the Department of Education to enter into no more than 6 VFAs. A VFA may modify the guarantor provisions under sections 428 (b) and (c) of the Higher Education Act, such as the issuance of insurance on FFEL Program loans, defined default aversion activities, collection activities on defaulted loans, guarantor revenue and funding models, and other requirements. For more information on VFAs, see Volume 64, No. 144 of the Federal Register, published July 28, 1999.
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