Procyclical Fiscal Policy?

Answer During economic downturns, policymakers can take two approaches to address the lack of economic growth. While Keynesian economists support a countercyclical approach by lowering interest rates and ... Read More »

Top Q&A For: Procyclical Fiscal Policy

What is fiscal policy&monetary policy?

Fiscal and monetary policy refer to two classes of economic policy that governments and central banks have at their disposal. Fiscal policy involves government use of its budget to affect the econo... Read More »

Fiscal & Monetary Policy?

Fiscal and monetary policy are related, yet highly distinct concepts. One important distinction is between the agents who make policy. Monetary policy is not set by the government, but by bankers s... Read More »

Fiscal Vs. Economic Policy?

Even in capitalist, market-driven economies such as the United States, the government plays a significant role in guiding the economy. Economic policy is a broad term used to cover a range of other... Read More »

Negative Consequences of Expansionary Fiscal Policy?

When a country's economy is struggling, its government may attempt to stimulate economic growth through expansionary fiscal policy. This is done by lowering tax rates and by increasing government s... Read More »