fiscal policy

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

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

The yen slides as investors bet Sanae Takaichi’s victory in the leadership election of Japan’s ruling Liberal Democratic Party will result in an expansion of fiscal policy and lead to lower interest rates.

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It’s a tricky balancing act: Uncertainty about fiscal policy, high household debt and Thai baht volatility back a wait-and-see approach.

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The divergence centers on tariffs and fiscal policy.

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The accord left the Fed in charge of government spending and taxation, or fiscal policy.

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Georgieva credits such economic resilience to improved policy, especially in emerging markets that have “significantly” upgraded their policy frameworks and institutions by, for example, inflation-targeting, instituting currency flexibility, and more effectively using fiscal policy.

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