What does Fiscal mean?
- Fiscal refers to government finances - especially how money is raised and spend.
- So when the government lowers taxes and increases spending during a recession, that is fiscal policy in action.
- You can view it as the wallet of the government to keep the economy in balance.
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Economics and politics student from Germany. Interested in a broad field of topics and trying to easily break down topics from his studies to everyone.
In this Mini-Series, we will talk about the key concepts of macroeconomics. I will shortly explain each concept in a respective post. This is part 4 of 5, covering the fiscal policy.
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