fiscal policy

Cultural  

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

---

Discover More

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

See Examples For:

fiscal policy

The starkest contrast between then and now is the fiscal policy situation.

From Barron's ● Jun. 26, 2026

Greenspan, while officially in charge of monetary policy, actually played a key role in shaping fiscal policy.

From Barron's ● Jun. 26, 2026

The central bank stated fiscal policy will be more accommodative, potentially requiring a higher key rate path than expected.

From The Wall Street Journal ● Jun. 19, 2026

“For the economy and markets, a hawked-up Fed puts me in a more defensive mood. Monetary policy is tightening and fiscal policy is poised to tighten at the turn of the year,” Dutta said.

From MarketWatch ● Jun. 17, 2026

Why should we fight Germany or Japan because our agriculture is inefficient or our fiscal policy inadequate or because our wealthy are too wealthy and our poor too poor?

From American World Policies by Weyl, Walter E.