Meaning & use

fiscal policy

noun·Academic

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.

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