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

A reversal of loose fiscal policy would hurt U.S. growth in the medium-term, which would also weigh on the dollar.

From MarketWatch • May 22, 2026

Mr. Warsh has written about a new version of the 1951 Treasury-Fed Accord that left fiscal policy to the Treasury while letting the central bank focus on monetary matters.

From The Wall Street Journal • Apr. 20, 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

These were refused, the Reichstag was dissolved and Prince Bismarck boldly came forward with a new fiscal policy, a combination of protection and state socialism.

From Encyclopaedia Britannica, 11th Edition, Volume 2, Slice 2 "Anjar" to "Apollo" by Various