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

That includes shrinking the Fed’s balance sheet to stay out of fiscal policy, and avoiding other political snares.

From The Wall Street Journal • Apr. 24, 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

There are examples in history when contractionary monetary and fiscal policy exacerbated recessions already under way.

From Barron's • Apr. 3, 2026

The survey explored both how the participants perceived the nature and severity of the risk regarding Social Security, Medicare and fiscal policy, and how they might act to hedge the risk.

From MarketWatch • Mar. 27, 2026

Three years ago a conference of all the Australian colonies was held to consider the adoption of a common fiscal policy.

From Critical Miscellanies (Vol. 3 of 3) Essay 9: The Expansion of England by Morley, John