What is fiscal policy in economics?

In economics and political science, fiscal policy is the use of government revenue collection ( taxes or tax cuts) and expenditure to influence a country's economy.

What is discretionary fiscal policy?

The government has two types of discretionary fiscal policy options—expansionary and contractionary. Each type of fiscal policy is used during different phases of the economic cycle to stop or slow recessions and booms. Expansionary fiscal policy involves the measures taken by the government to put more money back into the economy.

What is financial policy?

: the financial policy of a government particularly as regards the budget and the method and timing of borrowings and especially in relation to central-bank credit policy Love words? You must — there are over 200,000 words in our free online dictionary, but you are looking for one that’s only in the Merriam-Webster Unabridged Dictionary.

What is Keynesian fiscal policy?

Fiscal policy is based on the theories of the British economist John Maynard Keynes, whose Keynesian economics theorised that government changes in the levels of taxation and government spending influence aggregate demand and the level of economic activity.