"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."
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.
International Trade: Understanding the relationship between international trade and fiscal policy, including tariffs and trade agreements.
Exchange Rates: Understanding the role of exchange rate regimes in international fiscal policy and their impacts on trade, investment, and currency values.
Taxation: Understanding the different tax systems and tax rates in various countries and how these affect competition, investments, and trade.
Public Expenditures: Understanding how governments spend money through fiscal policy, including social welfare programs, infrastructure, and defense.
Economic Growth: Understanding how fiscal policy can affect economic growth both domestically and internationally.
Budgeting: Understanding how fiscal policy is formulated, implemented, and reviewed, including issues such as budget deficits and debt management.
Monetary Policy: Understanding the connection between monetary policy and fiscal policy in the context of international economic relations.
Financial Market: Understanding how financial markets operate, including stock markets, bond markets, and foreign exchange markets, and their relationship to fiscal policy.
Investment and Savings: Understanding how fiscal policies can impact the decisions of investors and savers and how this can affect national and international economics.
Regional Integration: Understanding how regional economic integration affects international fiscal policy, including the role of regional organizations such as the EU, NAFTA, and ASEAN.
International Institutions: Understanding how international institutions such as the World Bank, IMF, and WTO affect international fiscal policy.
Cross-border Capital Flows: Understanding the impact of cross-border capital flows on fiscal policy, including foreign direct investment and portfolio investment.
Balance of Payments: Understanding the balance of payments and its impact on fiscal policy, including the trade deficit and current account imbalance.
Country Risk: Understanding how country risk factors such as political instability, corruption, and natural disasters can affect fiscal policy.
Environmental and Social Impact: Understanding the environmental and social impacts of fiscal policy, including issues such as the carbon tax and social welfare programs.
International Trade: Fiscal policy can be influenced by international trade policy, which involves regulations and taxes affecting the movement of goods and services across borders. Governments may use fiscal policy tools to support their domestic industries, to encourage exports or restrict imports.
International Cooperation: Fiscal policy can be influenced by international cooperation between governments, such as through trade agreements and international monetary agreements. Governments may coordinate fiscal policies to promote global economic stability or reduce economic disparities between countries.
International Finance: Fiscal policy can be influenced by international financial markets and capital flows. Governments may use fiscal policy tools to attract foreign investment, manage foreign currency risks and to ensure that the value of their currency is stable.
International Debt: Fiscal policy can be influenced by international debt and borrowing. Governments may use fiscal policy tools to repay debts or manage debt service costs.
International Aid: Fiscal policy can be influenced by international aid and assistance. Governments may use fiscal policy tools to channel aid resources effectively to support development goals, to address poverty, and to address environmental challenges.
Crisis Management: Fiscal policy can be influenced by international crisis management efforts, such as those implemented during financial crises or pandemics. Governments may use fiscal policy tools to manage crises and mitigate the economic impacts of crises.
International Taxation: Fiscal policy can be influenced by international tax policies and practices, such as transfer pricing or tax havens. Governments may use fiscal policy tools to promote international tax coordination and reduce tax evasion and avoidance.
"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."