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Fiscal Policy

   Also found in: Dictionary/thesaurus, Encyclopedia, Wikipedia, Hutchinson 0.01 sec.
Fiscal policy
Government spending and taxing for the specific purpose of stabilizing the economy.

Fiscal Policy
Government policies related to taxes, spending, and interest rates. Fiscal policy is intended positively influence macroeconomic conditions. The primary debate within this field is how active a government should be. Proponents of a tight fiscal policy argue that government acts best when it acts least; they promote low taxes and spending and ideally limit government involvement to the setting of prevailing interest rates. Proponents of a loose government policy believe that government has a larger role in promoting economic well-being. See also: Reaganomics, Keynesian economics.

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.

Fiscal Policy

What Does Fiscal Policy Mean?

Government spending policies that influence macroeconomic conditions. These policies are used to influence the overall economy by manipulating tax rates, interest rates, and government spending.

Investopedia explains Fiscal Policy

Since the 1980s, most western countries have followed a “tight” policy, limiting public expenditure.

Related Terms:
Efficient Market HypothesisEMH
Interest Rates
Macroeconomics
Microeconomics
Monetary Policy



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Summary: With economic forecasts improving and monetary and fiscal policy tightening in other industrialized nations, the Australian dollar may be losing some of.
The other is the rehabilitation of fiscal policy as an important part of the tool kit used to minimise the inherent instability of capitalist societies--usually called the business cycle.
Perry Paris, "The Coming Credit Collapse" "Fiscal policy measures which draw funds exclusively from the private capital market will increase total spending to the extent of the government spending, but since private capital is siphoned off, the 'multiplier effect' of fiscal policy approaches one for one.
 
 
 
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