"The use of government revenue expenditures to influence macroeconomic variables developed in reaction to the Great Depression of the 1930s, when the previous laissez-faire approach to economic management became unworkable."
The use of government spending and taxation to influence the economy's overall performance, employment, and inflation.
Introduction to Fiscal Policy: An overview of the role of fiscal policy in an economy, its impact on economic growth, and its importance in maintaining economic stability.
Government Budgeting: The process of creating and implementing a government budget, an essential element of fiscal policy.
Taxation: The process of levying taxes on individuals and businesses, and how this impacts the economy.
Public Expenditure: An analysis of government spending and how it influences economic activity.
Public Debt and Deficit: An examination of the effects of borrowing, public debt, and a government deficit on the economy.
Fiscal Stimulus: The use of government spending to boost economic activity during times of economic downturn.
Fiscal Austerity: The use of fiscal restraint to reduce government spending and the budget deficit.
Multipliers: An overview of the economic impact of government spending on various sectors of the economy.
Economic Stabilization: The use of fiscal policy to stabilize the economy and prevent economic fluctuations.
Fiscal Policy and Monetary Policy: The relationship between fiscal and monetary policy, and how they work together to maintain economic stability.
Automatic Stabilizers: A discussion of the mechanisms built into the economy that can stabilize the economy without direct government intervention.
Fiscal Rules: A discussion of the rules used to guide government decision-making in fiscal policy.
Distributional Effects of Fiscal Policy: An analysis of how fiscal policy affects different groups of people within an economy.
International Dimensions of Fiscal Policy: How fiscal policy is used in international trade and how it affects other countries.
Political Economy of Fiscal Policy: A discussion of the political and institutional factors that impact fiscal policy.
Expansionary Fiscal Policy: Increase government spending and/or reduce tax rates to boost demand, create jobs, and stimulate economic growth.
Contractionary Fiscal Policy: Decrease government spending and/or increase tax rates to reduce demand, curb inflation, and slow down economic growth.
Automatic Stabilizers: Tax and transfer systems that adjust automatically according to the economic conditions, without any active intervention from the government.
Supply Side Fiscal Policy: Focused on improving the supply-side of the economy by providing incentives or deregulating the market to increase production, innovation, and efficiency.
Expansionary Monetary Policy: Increase money supply and/or reduce interest rates to encourage borrowing, spending, and investment, which stimulates economic growth.
Contractionary Monetary Policy: Decrease money supply and/or increase interest rates to discourage borrowing, spending, and investment, which reduces inflation.
Open Market Operations: Buying or selling government securities in the open market to influence the money supply.
Reserve Requirements: Mandating the minimum reserves that banks must hold to strengthen the stability of the banking system and regulate the money supply.
"Fiscal policy is based on the theories of the British economist John Maynard Keynes, whose Keynesian economics theorized that government changes in the levels of taxation and government spending influence aggregate demand and the level of economic activity."
"Fiscal and monetary policy are the key strategies used by a country's government and central bank to advance its economic objectives."
"Changes in the level and composition of taxation and government spending can affect macroeconomic variables, including: - Aggregate demand and the level of economic activity - Saving and investment - Income distribution - Allocation of resources."
"Fiscal policy deals with taxation and government spending and is often administered by a government department; while monetary policy deals with the money supply, interest rates and is often administered by a country's central bank."
"It is designed to try to keep GDP growth at 2%–3% and the unemployment rate near the natural unemployment rate of 4%–5%. This implies that fiscal policy is used to stabilize the economy over the course of the business cycle."
"The previous laissez-faire approach to economic management became unworkable during the Great Depression of the 1930s."
"Fiscal policy is used to stabilize the economy over the course of the business cycle."
"Fiscal policy is based on the use of government revenue collection (taxes or tax cuts) and expenditure to influence a country's economy."
"Fiscal policy is based on the theories of the British economist John Maynard Keynes, whose Keynesian economics theorized that government changes in the levels of taxation and government spending influence aggregate demand and the level of economic activity."
"Inflation is considered 'healthy' at the level in the range 2%–3%."
"Fiscal policy is designed to increase employment."
"The unemployment rate near the natural unemployment rate of 4%-5% is targeted by fiscal policy."
"Both fiscal and monetary policies influence a country's economic performance."
"The use of government revenue expenditures to influence macroeconomic variables developed in reaction to the Great Depression of the 1930s."
"The previous laissez-faire approach to economic management became unworkable during the Great Depression of the 1930s."
"Fiscal policy can affect macroeconomic variables, including aggregate demand and the level of economic activity, saving and investment, income distribution, and allocation of resources."
"Government revenue collection (taxes or tax cuts) and expenditure are the primary tools of fiscal policy."
"Fiscal policy is often administered by a government department."
"Fiscal policy deals with taxation and government spending, while monetary policy deals with the money supply and interest rates."