Fiscal policy tools are the specific mechanisms through which governments implement their fiscal policies. These tools fall primarily into two categories: government spending and taxation.

It is no secret that we have been fighting inflation that reached a 40-year high and the Federal Reserve Bank has embarked on a historic interest rate increase to combat inflation. Not only have they ...

Three years since the outbreak of the pandemic, fiscal policy has moved a long way toward normalization. Governments have withdrawn exceptional fiscal support, and public debt and deficits are falling ...

China’s top economic officials said they have carved out plenty of room to act in the face of uncertainty and risks, after their country set an ambitious growth target for 2025 despite higher US ...

The federal government routinely uses government spending and taxes to help offset the highs and lows of the U.S. business cycle. While government spending typically increases during a recession, the ...

Terry Lane is a writer for Investopedia with 25 years of experience in journalism and communications. He covers personal finance, Congress, government regulations, and economics. Investopedia / Photo ...

The fate of President Donald Trump's ambitious economic policy plans will be determined by the people he appoints to critical positions. With a debt of over $36 trillion (heading toward $59 trillion ...