fiscal policy (redirected from Contractionary fiscal policy)

Fiscal Policy

Government spending policies that influence macroeconomic conditions. These policies affect tax rates, interest rates, and government spending, in an effort to control the economy.

Notes:

Since the 1980s, most Western Countries have held a "tight" policy, limiting public expenditure.

See also: Income Tax, Interest Rates, Monetary Policy, Reflation

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Fiscal policy

Government spending and taxing for the specific purpose of stabilizing the economy.

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fiscal policy

The existing policy the government has for spending and taxing. Fiscal policy directly affects economic variables, such as tax rates, interest rates, and government programs, that influence security prices. See also monetary policy.