Other Definitions
fiscal policy (dict)
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Fiscal Policy Contractionary fiscal policy Fiscal Policy is the economic term which describes the behaviour of governments in raising money to fund current spending and investment for collective social purposes and for transfer payments to citizens and residents of the territory for which the government is responsible. The money may be raised by taxation, by borrowing, by user charges on social assets or services, or by fiat. (On the last, the government declares a particular token to be money and demanding that it be accepted in settlement of debts.) Fiscal policy can include deficit spending to stimulate demand for domestic goods and services to rise (to fight unemployment) or efforts to cut deficits or raise the budget surplus to fight inflation. A government which wishes to borrow from foreign citizens will need to maintain accounts to allow potential creditors to assess its credit worthiness. These accounts are typically maintained on an annual basis giving rise to a fiscal year. In each fiscal year a government will have a total income (its revenue) and a total expenditure. The latter minus the former is the fiscal deficit (or fiscal surplus if negative). Year on year the fiscal deficit adds to (or reduces) outstanding government borrowing. If government debt (sometimes misleadingly called the "national" or "public" debt) is denominated in the government's own currency, then it will be devalued in line with the country's domestic inflation. Under crisis conditions a government may choose to default on (i.e., repudiate) its foreign (or more rarely) its domestic debt. A government will pay interest on its outstanding debt. This must be paid out of tax revenue (or compensated for by cutting expenditures). For this reason a government will typically aim to ensure that its fiscal deficit averaged over the business cycle is no greater than the share of state spending of gross domestic product multiplied by the sustainable rate of growth of gross domestic product. An exception to this rule arises when the deficit finances government investment in infrastructure, public health, basic research, or education, which can stimulate increases in potential output, i.e., long-term (supply-side) economic growth. The government's detailed decisions in this arena form its fiscal policy. Types Given different situations, the government may adopt certain policies that can either increase or decrease output in the short run. For instance, if the government faces a threat of a recession, it may adopt an expansionary fiscal policy, a policy that involves increasing government spending and cutting taxes, in order to spur economic output. Conversely, the government may adopt a contractionary fiscal policy, involving a reduction in government spending and an increase in taxes when faced with an overheating economy. These actions, however, may have other effects in the economy. For instance, an expansionary fiscal policy may lead to the crowding out of investment. See Also Monetary policy Extra Information: Although that Fiscal Policy is considered to be an income for the government, yes.
|  | center township, greene county, pennsylvania
clarksville, pennsylvania
cumberland township, greene county, pennsylvania
dunkard township, pennsylvania
fairdale, pennsylvania
franklin township, greene county, pennsylvania
freeport township, pennsylvania
gilmore township, pennsylvania
gray township, pennsylvania
greene township, greene county, pennsylvania
greensboro, pennsylvania
| jackson township, greene county, pennsylvania
jefferson, greene county, pennsylvania
jefferson township, greene county, pennsylvania
monongahela township, pennsylvania
morgan township, pennsylvania
morris township, greene county, pennsylvania
morrisville, greene county, pennsylvania
nemacolin, pennsylvania
perry township, greene county, pennsylvania
rices landing, pennsylvania
richhill township, pennsylvania
| springhill township, greene county, pennsylvania
washington township, greene county, pennsylvania
wayne township, greene county, pennsylvania
waynesburg, pennsylvania
lake taupo
whiteley township, pennsylvania
alexandria, pennsylvania
barree township, pennsylvania
birmingham, pennsylvania
brady township, huntingdon county, pennsylvania
broad top city, pennsylvania
| carbon township, pennsylvania
cass township, huntingdon county, pennsylvania
cassville, pennsylvania
clay township, huntingdon county, pennsylvania
coalmont, pennsylvania
cromwell township, pennsylvania
dublin township, huntingdon county, pennsylvania
dudley, pennsylvania
franklin township, huntingdon county, pennsylvania
henderson township, huntingdon county, pennsylvania
hopewell township, huntingdon county, pennsylvania
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