"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."
It deals with government spending and taxation, including the annual budget, borrowing, and deficits.
Role of Fiscal policy: Fiscal policy refers to the use of government spending and taxation to influence economic activity. This topic covers the goals of fiscal policy, its mechanisms and how it works in practice.
Types of Fiscal policy: This topic discusses the two types of fiscal policy: expansionary fiscal policy and contractionary fiscal policy. It explores when each type is used and their impacts on the economy.
Fiscal policy tools: This topic covers the different fiscal policy tools that can be used, such as government spending, taxation, transfer payments, and debt management. It also discusses the advantages and limitations of these tools.
Macroeconomic objectives: Fiscal policy is often used to achieve macroeconomic goals such as full employment, price stability and economic growth. This topic explores how fiscal policy can be used to achieve these goals.
Fiscal policy in the business cycle: This topic covers how fiscal policy is used to stabilize the economy during the different phases of the business cycle. It also discusses the timing and appropriateness of fiscal policy actions.
Fiscal policy and monetary policy: This topic explores the relationship between fiscal policy and monetary policy, and how the two can be used together to achieve macroeconomic goals.
Fiscal policy and government debt: Fiscal policy often involves government borrowing, which can lead to increased government debt. This topic discusses the impact of government debt on the economy and how it can be managed.
International aspects of fiscal policy: This topic covers how fiscal policy can impact international trade, capital flows, and exchange rates. It also discusses international coordination of fiscal policy among countries.
"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."