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FISCAL POLICY

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FISCAL POLICY
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Vijith Pujari
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FISCAL POLICY - July 13th, 2007

FISCAL POLICY

Fiscal Policy

Federal taxation and spending policies designed to level out the business cycle and achieve full employment, price stability, and sustained growth in the economy. Fiscal policy basically follows the economic theory of the 20th-century English economist John Maynard Keynes that insufficient demand causes unemployment and excessive demand leads to inflation. It aims to stimulate demand and output in periods of business decline by increasing government purchases and cutting taxes, thereby releasing more disposable income into the spending stream, and to correct overexpansion by reversing the process. Working to balance these deliberate fiscal measures are the so-called built-in stabilizers, such as the progressive income tax and unemployment benefits, which automatically respond countercyclically. Fiscal policy is administered independently of Monetary Policy by which the Federal Reserve Board attempts to regulate economic activity by controlling the money supply. The goals of fiscal and monetary policy are the same, but Keynesians and Monetarists disagree as to which of the two approaches works best. At the basis of their differences are questions dealing with the velocity (turnover) of money and the effect of changes in the money supply on the equilibrium rate of interest (the rate at which money demand equals money supply)
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ankush_garg2
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Re: FISCAL POLICY - September 1st, 2008

dere is a lot more that can be explained. i ll upload a ppt.
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Rahul Tyagi
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Re: FISCAL POLICY - January 15th, 2009

I think attachment is missing. Please post attachment.
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sumit_makhamale
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Re: FISCAL POLICY - March 16th, 2009

attachment is not there
plz check properly
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Alistair Rego
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Re: FISCAL POLICY - May 27th, 2009

Quote:
Originally Posted by rtyagis View Post
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For more notes on fiscal policy go here Fiscal Policy

or you can also search the website in the search box provided above for any notes on the same topic available here.



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Kapil Yadav
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Re: FISCAL POLICY - September 19th, 2010

Hi All,
My first post,
This site is very useful, can get every topic here...
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