Skip to content
Centrino Capital

Fiscal Policy Definition

Fiscal policy refers to government decisions on spending and taxation used to influence the economy.

Back to Glossary

What is Fiscal Policy?

Expansionary fiscal policy involves increased spending or lower taxes to stimulate growth, while contractionary policy does the opposite.

Fiscal policy works alongside monetary policy, which is managed by central banks, to influence economic conditions.

Example of Fiscal Policy

A government increasing infrastructure spending to boost economic activity is implementing expansionary fiscal policy.

Start Your Trading Journey

Register, fund, and start trading today, your path to smarter investing begins here.