20140319

fiscal policy

Today's issue is sponsored by Zenect Wealth:
Gold is Plummeting... What You Must Do NOW!
Zenect Wealth Research just released a FREE report. Discover secrets every investor MUST know about gold. Discover one IGNORED gold investment producing oversized results! Learn to invest and outperform even GOLD's phenomenal results.


Click HERE to get your FREE 12 page report now!
 
TERM OF THE DAY

fiscal policy

Government's revenue (taxation) and spending policy designed to (1) countereconomic cycles in order to achieve lower unemployment, (2) achieve low or noinflation, and (3) achieve sustained but controllable economic growth. In arecessiongovernments stimulate the economy with deficit spending(expenditure exceeds revenue). During period of expansion, they restrain a fast growing economy with higher taxes and aim for a surplus (revenue exceeds expenditure). Fiscal policies are based on the concepts of the UK economistJohn Maynard Keynes (1883-1946), and work independent of monetary policywhich tries to achieve the same objectives by controlling the money supply.
Learn more about this term
Usage Example
Fiscal policy is used by governments to influence activity within an economy and can change depending on whether the economy is experiencing recession, expansion or something in between.
FacebookFacebookTwitter
 
TRIVIA OF THE DAY
Choose the Right Answer:
(A) Pound 
(B) Peso 
(C) Shilling 
(D) Euro 
Original image provided by DonkeyHotey. Image was altered by adding text. License