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fiscal policy
This term refers specifically to the use of government revenue collection and expenditure to influence a nation's economy. It is distinct from monetary policy, which is managed by a central bank and involves interest rates and the money supply. While monetary policy is often adjusted quickly, fiscal policy typically involves legislative processes and longer-term budgetary changes.
In professional and academic contexts, the term is usually categorized as either expansionary (increasing spending or decreasing taxes to stimulate growth) or contractionary (decreasing spending or increasing taxes to slow inflation). It is a formal term used primarily in economics, political science, and government administration.
Meanings
Examples
Our economics class debated fiscal policy today.
The board criticized the current fiscal policy.