Glossary

What is Fiscal policy?

Money & central banks

How the government uses spending and taxes to influence the economy. It is set by the government, while monetary policy is set by the central bank.

Think of it like: The government's steering wheel, next to the central bank's brake pedal.
Real example: Fuel subsidies and infrastructure spending are fiscal policy.
Lesson: What GDP counts Practise it now: Headline Reflex

Related words

All 189 words in the glossary