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General TradingF
Fiscal Policy
Fiscal policy refers to government decisions on taxation and spending used to influence a country's economy. Expansionary fiscal policy (more spending or tax cuts) stimulates growth, while contractionary policy (less spending or tax hikes) aims to cool an overheating economy.
Example
“When the government announced a $2 trillion stimulus package, markets rallied because the expansionary fiscal policy was expected to boost consumer spending and corporate earnings.”