Your Desire To Earn
Day Trading Shares
Welcome to the Indian Share Market
D T S
WHEN the government makes use of its revenue and expenditure programmes (to achieve the above mentioned goals) and affects the aggregate level of demand for goods and services in the economy, then this action is essentially known as fiscal policy. Related to fiscal policy are deficits and surpluses. When the governmentís expenditure exceeds its revenue, then there is a fiscal deficit and the opposite of this is known is fiscal surplus.
Following terms to find more information
fiscal monetary policy
monetary and fiscal policies
monetary and fiscal policy
expansionary fiscal policy
contractionary fiscal policy
discretionary fiscal policy
the fiscal policy
what is fiscal policy
government fiscal policy
current fiscal policy
fiscal policy ppt
define fiscal policy
fiscal policy article
economics fiscal policy
fiscal policy impact
fiscal policy examples
fiscal policy problems
fiscal policy wikipedia
exchange rate policy
Disclaimer: Information presented on this site is a guide only. It may not necessarily be correct and is not intended to be taken as financial advice
nor has it been prepared with regard to the individual investment needs and objectives or financial situation of any particular person. Stock quotes
are believed to be accurate and correctly dated, but www.daytradingshares.com does not warrant or guarantee their accuracy or date.
www.daytradingshares.com takes no responsibility for any investment decisions based on recommendations provided on website.
Financial contents like Technical charts, historical charts and quotes are taken from NSE and Yahoo sites.
Note - All quotes are delayed by 15 minutes and unless specified.
Please read at www.daytradingshares.com/disclaimer.php before using any material or advice given at www.daytradingshares.com
Copyright © 2009 DayTradingShares.com. All Rights Reserved.
What is the difference between fiscal and monetary policies?
Renowned economist Keynes believed that taxes and expenditure decisions, that is fiscal policy, should be used to stabilize the economy. According to him, government should cut taxes and increase spending to bring the economy out of a slump, this kind of a policy action is known is expansionary fiscal policy. On the other hand, government should increase taxes and cut expenditure to bring the economy out of inflationary pressure, that is, it should follow a contractionary fiscal policy. The classical economists however believed that the government can affect the level of output, overall price level and interest rates by determining the level of money supply in the economy. When the central bank uses tools like CRR and repo rate to control the level of money supply to stabilize the economy then it is known as the monetary policy.
How does a fiscal policy affect the economy?
Aggregate demand, which is the total demand for goods and services in the economy, depends on three main variables- consumption, private investment and government spending. When the government increases its expenditure then it spurs the aggregate demand in the economy. A higher aggregate demand in turn will stimulate output, growth and employment. Whereas if the government lowers itís spending then it decreases the aggregate demand and hence slows down the growth of the economy.
fiscal economic policy
fiscal policy tools
fiscal policy effects
economy fiscal policy
fiscal policy articles
economic growth policy