economics
fiscal policy
Government decisions about taxation and spending to influence the economy.
Example
"The government used expansionary fiscal policy — cutting taxes and increasing spending — to stimulate the economy."
💡 Memory Tip
FISCAL = financial. Fiscal policy is the government's financial policy — taxes and spending.
Etymology
From Latin 'fiscus' meaning 'treasury, money basket' — policy about the government's money.
Common Misspellings
fiskal policyfiscal polcyfiscal pollicyfical policy
Related Terms
See Also
taxationgovernment spending