noun phrase · academic
fiscal policy
UK/ˈfɪskəl ˈpɒlɪsi/US/ˈfɪskəl ˈpɑːləsi/FIS·cal POL·i·cy
Government decisions about taxes and spending used to influence the economy.
Examples
“Many economists debate whether fiscal policy should focus on short-term stimulus or long-term sustainability.”
“After the recession, the government tightened fiscal policy to reduce the budget deficit.”
“Fiscal policy can complement monetary policy when trying to control inflation.”
Band 8 sentence
“A sound fiscal policy balances the need for public investment with the imperative of long-term debt sustainability.”
Collocations
- tighten fiscal policy
- expansionary fiscal policy
- fiscal stimulus
Word family
Common mistakes
financial policy→fiscal policy
fiscal politic→fiscal policy
Say it for a higher band
5tax and spending policy→6government spending policy→7+fiscal policy
Synonyms
budgetary policy
Easily confused
monetary policy
“Central banks adjust interest rates as a part of monetary policy to control inflation.”
Related words
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In Society & Government
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