https://www.veritaswiki.org/index.php?action=history&feed=atom&title=Fiscal_Policy 2026-10-19T19:21:29Z Revision history for this page on the wiki MediaWiki 1.45.3 https://www.veritaswiki.org/index.php?title=Fiscal_Policy&diff=66&oldid=prev 2026-10-06T04:13:39Z

<p>Created English encyclopedia entry on Fiscal Policy following Wikipedia-style standards</p> <p><b>New page</b></p><div>&#039;&#039;&#039;Fiscal policy&#039;&#039;&#039; is the use of government spending and [[taxation]] to influence the economy. It is one of the two main instruments of macroeconomic policy, alongside [[monetary policy]], and is used by governments to promote growth, reduce [[unemployment]], and stabilise prices.&lt;ref name=&quot;wiki&quot;&gt;Wikipedia contributors, &quot;Fiscal policy&quot;.&lt;/ref&gt;<br /> <br /> == Definition ==<br /> <br /> Fiscal policy refers to the decisions a government makes about the level and composition of taxation and public spending. These decisions affect the overall level of demand in the economy, the distribution of income, and the provision of public services.&lt;ref name=&quot;wiki&quot;/&gt;<br /> <br /> == Types ==<br /> <br /> Fiscal policy may be classified as &#039;&#039;&#039;expansionary&#039;&#039;&#039; or &#039;&#039;&#039;contractionary&#039;&#039;&#039;:<br /> <br /> {| class=&quot;wikitable&quot;<br /> ! Type<br /> ! Measures<br /> ! Purpose<br /> |-<br /> | [[Expansionary Fiscal Policy]]<br /> | Increase spending, cut taxes.<br /> | Stimulate demand, reduce unemployment.<br /> |-<br /> | Contractionary fiscal policy<br /> | Cut spending, raise taxes.<br /> | Cool an overheating economy, reduce inflation.<br /> |}<br /> <br /> Fiscal policy may also be &#039;&#039;&#039;discretionary&#039;&#039;&#039; (deliberate policy changes) or &#039;&#039;&#039;automatic&#039;&#039;&#039; (arising from automatic stabilisers such as unemployment benefits, which rise in a downturn and fall in a boom).&lt;ref name=&quot;wiki&quot;/&gt;<br /> <br /> == Objectives and constraints ==<br /> <br /> The objectives of fiscal policy include supporting economic growth, stabilising the economy, redistributing income, and financing public goods. Its constraints include the level of [[National Debt|national debt]], the size of the [[Fiscal Deficit|fiscal deficit]], and the risk of crowding out private investment. The appropriate stance depends on the state of the [[Business Cycle|business cycle]] and the economy&#039;s position relative to potential output.&lt;ref name=&quot;wiki&quot;/&gt;<br /> <br /> == See also ==<br /> <br /> * [[Monetary Policy]]<br /> * [[Expansionary Fiscal Policy]]<br /> * [[Fiscal Deficit]]<br /> * [[Taxation]]<br /> * [[National Debt]]<br /> <br /> == References ==<br /> <br /> &lt;references /&gt;<br /> <br /> [[Category:Economics]]<br /> [[Category:Macroeconomics]]<br /> [[Category:Fiscal policy]]</div>

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