Meaning & use
fiscal policy
A government's use of taxation and public spending to influence a country's economy.
See it in a sentence
The government adjusted its fiscal policy by cutting taxes to encourage more consumer spending.
Economists debated whether the new fiscal policy would reduce the national deficit.
A note on using this word
Fiscal policy is distinct from monetary policy, which involves controlling interest rates and the money supply through a central bank.
Words with a similar meaning
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