What Is Fiscal Policy?

Fiscal policy is the means by which a government adjusts its levels of spending in order to monitor and influence a nation's economy

. It is the sister strategy to monetary policy with which a central bank influences a nation's money supply. These two policies are used in various combinations in an effort to direct a country's economic goals. Here we take a look at how fiscal policy works, how it must be monitored and how its implementation may affect different people in an economy. (For background on fiscal policies, see Formulating Monetary Policy.),

Ultimate Forex Guide Walkthrough

Before the Great Depression in the United States, the government's approach to the economy was laissez faire. But following the Second World War, it was determined that the government had to take a proactive role in the economy to regulate unemployment, business cycles, inflation and the cost of money. By using a mixture of both monetary and fiscal policies (depending on the political orientations and the philosophies of those in power at a particular time, one policy may dominate over another), governments are able to control economic phenomena.

How Fiscal Policy Works?

Fiscal policy is based on the theories of British economist John Maynard Keynes. Also known as Keynesian economics, this theory basically states that governments can influence macroeconomic productivity levels by increasing or decreasing tax levels and public spending. This influence, in turn, curbs inflation (generally considered to be healthy when at a level between 2-3%), increases employment and maintains a healthy value of money. (To read more on this subject, see Can Keynesian Economics Reduce Boom-Bust Cycles? and How Influential Economists Changed Our History.)

Click Here To Read Full Article

What Is Fiscal Policy?

By: My India

POST COMMENT

Grasp Fiscal Liberty With Wealth Masters Nota Fiscal Eletrônica: empresa pode ser surpreendida com multa em até cinco anos Payday Loans- Quick Solution To Fiscal Needs Quick Cash Loans - Grab Rapid Cash Advance For Small Fiscal Wants Fiscal Crisis Gives Argentines Familiar Sinking Feeling Uscis Approves 10,000 U Visas In Fiscal Year 2010 Oracle CEO Ellison's Pay Drops 17% To $70.1M In Fiscal 2010 Tratamento de Documentação Fiscal - Obrigações acessórias - Penalidades Speedy Payday - Great Fiscal Tool Pounds Till Payday:-quick Fiscal Help Till You Next Payday Pela quebra do $igilo fiscal dos partidos, candidatos, coordenadores de campanha e ocupantes de cargos públicos Conceito W Sistemas promove seminário gratuito on line sobre nota fiscal de serviço eletrônica Pounds Till Payday - Quick Access To Instant Fiscal Relief