fiscal policy

Cultural  

1. The policy of a government in controlling its own expenditures and taxation, which together make up the budget.

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A function of fiscal policy, along with monetary policy, is to regulate the level of economic activity, the price level, and the balance of payments. Fiscal policy also determines the distribution of resources between the public sector and the private sector and influences the distribution of wealth.

Example Sentences

Extricating the Fed from fiscal policy would allow it to focus on price stability rather than the confusing promise of ample reserves.

From The Wall Street Journal • May 27, 2026

Expectations of monetary tightening, along with concerns over Takaichi's fiscal policy, have helped drive a sharp rise in Japanese government bond yields in recent days.

From Barron's • May 19, 2026

That included both central bank policy and fiscal policy - the government's decisions on taxation and spending - he said.

From BBC • Apr. 15, 2026

This time, markets are watching for intervention as Japan faces a complex triple threat: rising crude prices, a widening trade deficit and a fundamental shift in domestic fiscal policy.

From The Wall Street Journal • Mar. 23, 2026

Despite these strong economic gains in 2002-04, which were largely due to renewed investor interest in emerging markets, IMF backing, and tighter fiscal policy, the economy is still plagued with high debt and deficits.

From The 2005 CIA World Factbook by United States. Central Intelligence Agency