Glossary Term

Fiscal Policy

Back to Glossary

Fiscal policy assumes that a government can regulate the country’s business cycle by adjusting its spending and calibrating tax policies accordingly. Brought forward by British economist John Maynard Keynes, fiscal policy suggests that government spending and taxation can be the two deciding factors affecting employment, aggregate demand and inflation. By doing so, the government can control and monitor financial health and diminish the possibilities of a financial crisis.

Find our Glossary interesting?
If you feel we’ve missed a term; let the Traders Expert team know and we’ll include it in our Glossary.

What is Fiscal Policy? A Traders Expert explanation.

Join Our Community!

Receive invitations to our live events, webinars & more!

Traders Expert