Fiscal policy instruments (i.e., taxes, government expenditure and public debt), individually or in different combinations, can be employed to deal with the situations of inflations and deflation. During depression, the fiscal policy aims at promoting aggregate spending, increasing employment, and thus raising the economy from the depths of depression. During inflation, on the other hand, […]
Fiscal Policy Instruments Adopted during Inflation and Deflation
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Fiscal Policy: Meaning and Instruments
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In this article we will discuss about the meaning and instruments of fiscal policy. Meaning of Fiscal Policy: Fiscal policy is a powerful instrument of stabilisation. “By fiscal policy we refer to government actions affecting its receipts and expenditures which we ordinarily take as measured by the government’s net receipts, its surplus or deficit.” The […]