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fiscal policy
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fiscal policy


The Federal Reserve has little influence over fiscal policy.
  the federal government’s decisions about the amount of money it spends, collects in taxes, and borrows
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fiscal policy fiscal policies
Strongly Associated with:   monetary policy
Notes:
Some economists favor using fiscal policy to try to grow or slow down the economy. For example, when unemployment is high and inflation is low, some believe that increasing government spending/borrowing will add to aggregate demand and increase economic growth. Others favor cutting taxes or using monetary policy in a manner that encourages increased private spending on the theory that decentralized markets will better allocate available resources than the government.
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Samples:
  • The Federal Reserve has little influence over fiscal policy.
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Associated words [difficulty]:   fiscal policy
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Most commonly used in these subjects:   Public Policy & Politics, Business, Personal Finance
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